Transaction overview
Latour Capital acquired a 35% stake in Primonial on September 10, 2019, alongside Bridgepoint and several international co-investors. The deal is valued at an undisclosed amount but includes Latour Capital's own shareholding and those of other investors such as LGT Capital Partners, Aberdeen Standard Investments, and Grosvenor Capital Management. Crédit Mutuel Arkéa sold 100% of its shares to the new investor group.
Deal structure and financing
The transaction involved a joint holding company where Latour Capital and Bridgepoint each hold an equal stake representing 70% ownership in Primonial. The remaining shares are held by management, Sogecap, and the Alpha Omega Foundation. Specific debt details were not disclosed; however, the deal required regulatory approvals from French financial authorities and the European Commission. Financing for this buyout was arranged with Rothschild and JP Morgan as lead advisors on the sell-side.
Strategic context
Latour Capital's acquisition aims to support Primonial’s strategic growth initiatives, including international expansion and development of new investment solutions. The previous involvement of Latour Capital in Primonial between 2015 and 2017 provided them with an understanding of the business environment and operations. Bridgepoint's continued participation since 2017 underscores its commitment to fostering Primonial’s ambition through sector expertise and international networks. This transaction enhances Primonial's ability to compete on a larger scale by bringing in complementary investors, thus solidifying its position as a leading independent wealth management group in France.
Regulatory path
The acquisition of Primonial required regulatory approvals from the Autorité des Marchés Financiers (AMF) and Commission de Surveillance du Secteur Financier (CSSF). Additionally, European Commission approval was necessary due to the transaction's cross-border nature. Although specific dates for filing with the U.S. Department of Justice or EU regulators are not provided, it is clear that significant regulatory scrutiny was involved given Primonial’s financial services operations and its ambitions in international markets.