State Street Global Advisors has acquired Mediolanum SpA’s 50 percent stake in the Italian joint venture Mediolanum State Street SGR p.A., subject to regulatory approval. Terms of the transaction were not disclosed.
The move reflects State Street’s ambition to expand into the Italian institutional investment market, following the opening of the company’s new offices in Milan in March 2004.
Mediolanum State Street SGR p.A. was created in 1998 to provide asset management services to the Italian institutional investment market. The joint venture launched Fondamenta, Italy’s first private equity fund of funds in 2000. Fondamenta invests in Italian funds across a range of private equity sectors as well as making substantial co-investments. State Street will name the newly-acquired company, SSgA SGR p.A. and will continue to manage Fondamenta in addition to developing a new range of fund of funds covering other alternative asset classes. The SSgA SGR p.A. investment team, led by Giuseppe Campanella, current chief investment officer of Fondamenta at Mediolanum State Street, will remain intact and will be strengthened by the appointment of Alberto Argnani to Senior Investment Manager. Argnani joins SSgA SGR p.a. from Deloitte Financial Advisory Services where he was a Director. A dedicated SSgA SGR p.A. Milan office will open in Autumn 2004.
Commenting on the acquisition, Erich Stock, a director of SSgA Limited in London and the current Managing Director of Mediolanum State Street said: “State Street Global Advisors’ decision to acquire Mediolanum SpA’s stake in the joint venture demonstrates our growth in the Italian marketplace and commitment to providing alternative investment solutions for Italian institutional investors. SSgA SGR p.A. recognises the specialist needs of Italian institutional investors who place great emphasis on local expertise and, unlike many of the investment products available, Fondamenta provides a tailor-made solution, which is managed locally.”
Giuseppe Campanella, chief investment officer of SSGA SGR p.A. added: “We are confident that our understanding of Italian institutional investors coupled with the success of Fondamenta will enable us to expand our range of fund of fund products over the coming year.”