Navigator Global Investments (NGI) has moved to increase its access to global alternative investment managers via a strategic partnership with global player, Stable Asset Management, and the acquisition of a portfolio of interests in17 alternative managers.
Announcing the move to the Australian Securities Exchange (ASX) Navigator placed the total consideration for the deal at US$195 million stating that the portfolio delivers attractive growth and earnings outlook and adds further scale and diversification for NGI.
It said NGI and Stable have entered into a long-term strategic partnership for the management and monitoring of what will now become the NGI Stable Growth Portfolio on behalf of NGI.
The announcement said the Strategic Partnership provides continuity, expertise and ongoing value creation to drive further scale in the Target Portfolio, with NGI paying Stable a flat fee of US$1.56 million a year for an initial six year term, after which the fee will be calculated based on the number of managers in the NGI Stable Growth Portfolio.
“The Strategic Partnership will expand NGI’s capabilities and growth opportunities in the provision of strategic capital to additional alternative managers, with a total of 29 Partner Firms in NGI following the acquisition,” the ASX announcement said.
“Partnering with Stable, a leading general partner investment, seeding and acceleration platform, creates a potential new avenue for both organic and inorganic growth,” it said. “With deep experience in sourcing, structuring and scaling alternative asset managers, Stable is expected to provide NGI with access to an attractive pipeline of additional opportunities.”
NGI chief executive, Stephen Darke said the acquisition of the growing portfolio of 17 interests in alternative asset managers, and the long-term partnership with Stable extended the company’s business model across the asset manager lifecycle and materially increases NGA’s addressable market.
NGI is funding the acquisition via US$103 million in cash, funded via a fully underwritten pro rate accelerated non-renounceable entitlement offer and US$96 million of NGI scrip issued to Stable shareholders, including Stable’s management team and Limited Partners priced at $2.31 per share.
The announcement said Stable LP’s and management team will in aggregate own approximately 9.6% of NGI ordinary shares on issue.