Fortis has sold International Asset Management Limited (IAM) to its management team, supported by certain third party investors. IAM is a London-based fund-of-hedge-funds manager, originally established in 1989. As at 31 March 2008 it had $4.3 billion in assets under management. IAM is one of the former subsidiaries of ABN AMRO Asset Management acquired by Fortis in the consortium bid launched with RBS and Santander for ABN AMRO in 2007.
“Following a strategic review of our investment in IAM, we concluded thatan MBO would be the best solution, reflecting the interests of all stakeholders, including our shareholders, and IAM’s customers and employees. We wish management every future success,” says Lex Kloosterman, member of the Fortis Group executive committee and responsible for AssetManagement. “Fortis remains fully committed to further developing our presence in the fund-of-hedge fund sector, through Fortis Investments’ existing majority interest in Cadogan Management.”
“We feel this MBO is the optimal solution for IAM clients and employees,” says Morten Spenner, CEO of IAM. “Over time, we have developed a strong and cohesive team which is committed to being amongst the very best in the industry. Our future as an independent specialist is an exciting opportunity for us all. IAMs new ownership structure generates a strong alignment of interests within the firm plus great depth of experience from our two new external shareholders.”
The transaction will not have a material impact on the Fortis net profit per share. Some solvency relief will accrue to Fortis.