Mediobanca and RAM Active Investments announce the reaching of an agreement of strategic partnership on the basis of which Mediobanca to acquire a 69% stake in RAM AI.
Established in 2007, headquartered in Geneva – Switzerland, RAM AI is a European systematic manager and offers a wide range of managed alternative funds equity fundamental systematic e fixed income discretionary to a wide range of institutional and professional investors. As of 31 October 2017, RAM AI had CHF 4,9 billion of assets under management across 14 funds.
RAM AI will continue to manage daily operations and will maintain its organizational independence, being also able to benefit from a solid institutional structure, the contribution of seed capital long-term which will help promote innovation and research and a wider network distribution in Europe.
I businesses founders Thomas de Saint-Seine, Maxime Botti and Emmanuel Hauptmann will maintain a significant stake in the Company and remain committed to its development for at least the next ten years. In addition, each businesses will reinvest a significant portion of the proceeds of the transaction into the Company's funds. The historical partner and institutional investor of RAM AI, the Reyl group, will maintain a stake of 7,5% in the Company and will continue to operate as businesses e anchor investors in the company's products.
The transaction is subject to the customary conditions, including authorization by the relevant authorities, and the closing is expected in the first half of 2018.
Thomas de Saint-Seine, CEO of RAM AI commented "Our company is enthusiastic about this new stage of RAM AI development. Mediobanca is an excellent partner both from a cultural point of view and in terms of distribution synergies. The partnership will provide additional operational resources ed an injection of seed capital that will help promote innovation and research in RAM AI, at the same time preserving our independence and distinctive culture. Our goal is to continue to offer different investment solutions to our investors, generating solid risk-adjusted returns based su comtry investment philosophies".
For CEO of Mediobanca Alberto Nagel "The strategic plan approved in November 2016 defined a clear acceleration in our repositioning, through the creation and development of an Asset Management platform. As part of this plan Mediobanca is strongly committed to the creation and development of an Alternative Asset Management business, through la creation of strategic partnerships with selected gifted operators of management team quality, excellent track record and scalable platforms. RAM AI is particularly qualified for integration of Mediobanca and become the basis for the development of systematic group strategies ed a center of innovation and the generation of new investment ideas. Plus RAM AI will make a scale contribution to theour alternative platform, will expand the product portfolio with equity strategies and is exceptionally positioned to benefit of cross selling synergies, distribution network e complementarity geographicto."
Through RAM AI, Mediobanca takes an important step forward in the development of business with high commission contribution and low capital absorption. In detail:
– Group AUM & AUA up 15% (from 30 billion in June 2017)
– Group fee and commission income up by around 10% (from 0,5 billion euro in June 2017)
– Commissions from Private/AM up 30% (from 134 billion euros in June 2017)
It is estimated that the transaction will absorb approximately 30 bps of the Mediobanca Group's CET1 (as of June 2017, also considering agreements put&call document, seed capital and payment 50% in cash – 50% in Mediobanca shares). The transaction is slightly accretive to Mediobanca's EPS.
