Finvest, the Finnish fund of funds manager listed on the Helsinki Stock Exchange, has reached agreement with its Scandinvian rival Sampo plc to merge the two firm's fund of funds operations under one company structure.
Finvest will acquire E19m of Sampo’s private equity fund investments, of which E6m is still to be drawn down. In return Sampo will receive a 49 per cent stake, making it the biggest shareholder in the enlarged group. The combined business, which will be renamed Amanda Capital plc, has funds under management totalling E800m.
“The strategy for Finvest has always been to try to grow the company,” commented Topi Piela, who becomes the managing director of Amana Capital. “Not only does this deal double our number of investments but it adds diversity to our range of investments.” Finvest currently has investments in eight general partnerships and had planned to make two further investments prior to the announcement of the merger.
According to Piela, the deal will also enable the business to cut management fees. The current fee of 1.25 per cent will be reduced on a sliding scale to between 0.5 and one per cent. The merger also means that a co-operation agreement between Finvest and LGT Capital Partners, the Liechtenstein alternative asset manager, has been terminated.
Piela said that Amanda Capital was not likely to seek new capital in the short term, but that a new fundraising campaign was likely to be launched next year. Completion of the merger will take place before the end of 2002.