Tetragon to acquire Equitix for ₤160m

The Amsterdam-listed asset manager has entered into an agreement to buy 85% of the UK infrastructure investment firm, with Equitix' management retaining the balance.

Tetragon Financial Group (TFG), an alternative asset manager, has entered into a definitive agreement with Cabot Square Capital to acquire Equitix Holdings, an investment company that delivers and manages public-private partnership (PPP) projects, Tetragon said in a statement.

Tetragon will pay £159.5 million (€202.1 million; $256.2 million) for an 85 percent stake in Equitix, while 15 percent of current ownership will remain with members of Equitix’ management group, according to the statement.

The fund manager’s team, which counts more than 50 members, is expected to stay with the firm post-acquisition.

“The acquisition will continue the diversification of TFG’s investment portfolio, and is consistent with its goals to add new asset classes and new asset managers to TFG Asset Management, TFG’s asset management platform,” Tetragon said.

Equitix is an integrated business with two complementary platforms – bidding and project development as well as fund and asset management.

Established in 2007 by Geoff Jackson, Nick Parker and Hugh Crossley, the firm now manages more than £1 billion of investor capital across three 25-year core infrastructure funds – focused on mid-size infrastructure projects – and two energy-efficiency funds. The firm has raised more than £3 billion in equity and debt and closed more than 20 infrastructure projects in the UK.

Equitix closed its third infrastructure fund in October 2013 on its hard cap of £500 million, a target it reached within six months of beginning fundraising.

Targeting investments across infrastructure, Equitix’ portfolio includes Greater Gabbard, an offshore transmission owner (OFTO) project. Through its energy-efficiency funds, Equitix Energy Efficiency Fund and Energy Saving Investments Fund, Equitix has funded a biomass boiler at the Tomatin Distillery in Scotland and another biomass project that seeks to replace inefficient heating systems with biomass boilers across the UK in both public and private community facilities.

The acquisition is subject to regulatory approval and other conditions while the purchase price is subject to adjustment until the closing date, Tetragon said.
Based in London and listed on Euronext Amsterdam, Tetragon maintains two key business segments – an investment portfolio and an asset management platform. Both segments cover a range of assets including bank loans, real estate, equities, credit and convertible bonds.