Management-led buy-out of $32bn fund arm
AXA Private Equity will separate from its parent company, French insurer AXA, in a management-led buy-out, reports the FT.
AXA is set to reduce its stake in the private equity arm to 21% as employees scoop up 46% and other investors take the rest.
The deal will establish the $32bn (£19.79bn) fund management business as a heavyweight in the European private equity industry.
Existing head Dominique Senequier will continue to lead the business and own about 10% of its shares, while Assurances du Credit Mutuel will acquire about 13% and other French families will own about 20%.
AXA’s stake in the private equity business is less than originally anticipated as employee interest outstripped expectation.
The sell-off is indicative of insurance and financial institutions decisions to exit certain holdings as regulation places more demands on capital requirements.
The AXA Private Equity deal will be valued at €510m (£426m), which includes a €150m ‘earn-out’ to AXA dependent on future profits.
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