The deal will enable First Sentier Investors to offer a new, diversified range of investment capabilities, expand its client relationships, and further strengthen the global asset management businesses

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FSI has signed an agreement with AlbaCore. (Credit: Sasun Bughdaryan on Unsplash)

First Sentier Investors (FSI), a subsidiary of Mitsubishi UFJ Trust and Banking (Trust Bank), has agreed to acquire a majority stake in UK-based investment manager AlbaCore Capital Group.

Established in 2016, AlbaCore has more than $9.5bn assets under management (AuM) across liquid strategies, structured products, and dislocation funds, among others.

With an office in Dublin, the London-based firm serves public and private pension funds as well as sovereign wealth funds, insurance and high-net-worth clients.

The transaction is expected to be completed in Q3 2023, subject to satisfaction of conditions in the sales and purchase agreement, including pending regulatory approvals.

Upon closing, AlbaCore will continue its operations as an autonomous business, with no change to its teams, office locations or brand name.

Its current leadership team will continue in the same positions, with managing partner and chief investment officer David Allen reporting to FSI chief executive officer Mark Steinberg.

Steinberg said: “The strategic partnership is aligned with FSI’s corporate strategy to accelerate growth by diversifying the range of investment capabilities it can offer to clients as well as expanding its global footprint.

“We identified alternative credit as a strategically important space for us to consider and we felt that AlbaCore’s unique position in the European market, its growth trajectory and strong investment performance would be complementary to our existing capabilities.”

Through the transaction, FSI will help AlbaCore to enhance its distribution and capital-raising capabilities across Asia-Pacific, North America and EMEA regions.

The deal will enable FSI to offer a new, diversified range of investment capabilities, expand its client relationships, and further strengthen the global asset management businesses.

AlbaCore said that its expertise in European private and public debt markets complements FSI’s existing private market expertise, focused on Australian and Asian public fixed-income markets.

David Allen said: “We are focused on the continued build-out of our credit investment platform and providing investors with nimble solutions that generate alpha through market cycles.

“We are delighted to partner with FSI to capitalise on the scale of market opportunities ahead. This partnership enhances AlbaCore’s growth prospects by extending market access to our expertise and deepening our product offering.

“When we started to engage with FSI, it was clear there was a strong cultural alignment between both businesses which was very important to us and will be critical to our shared future success.”