Generali in exclusive talks to buy Sycomore

Italian insurer Generali has entered into an exclusive negotiations with the shareholders of Sycomore Asset Management to acquire a majority stake in the company and enter into a strategic partnership.

Headquartered in Paris, Sycomore is an independent asset manager with over €8.3 billion assets under management (AuM) as of July 2018.

Under the proposed partnership, Sycomore would be part of the Generali multi-boutique platform coordinated by Generali Investments Partners, and would be instrumental in its objective to become the number one multi-boutique platform in Europe.

While the Generali group would own the economic majority of Sycomore, Sycomore’s founders would remain significant shareholders and its employees would increase their ownership. The Sycomore team would continue to run the strategy and operations of the firm independently.

Generali said the partnership is part of its multi-boutique strategy in asset management and commitment to environmental, social and governance (ESG) and socially responsible investment (SRI), in which Sycomore is said to be a pioneer in France.

According to the Italian insurer, the strategic partnership builds on the existing business relationship and strategic alignment between Generali and Sycomore, and aims to offer substantial potential for revenue synergies, in particular through the acceleration of Sycomore’s international expansion and the development of tailored offerings towards retail and institutional clients. In total, it is estimated that $23 trillion in assets are managed according to ESG / SRI criteria globally, including $12 trillion in Europe.

Timothy Ryan, group chief investment officer and CEO of asset & wealth management at Generali, commented: “Today’s announcement is an acceleration of the execution of our asset management strategy: by partnering with Sycomore, we will be able to enrich our offer with innovative investment solutions targeted to our insurance and individual clients, and to strengthen our focus and capabilities on sustainability and responsible investments.”

Carlo Trabattoni, head of Generali Investment Partners, said: “Generali seeks to collaborate with entrepreneurial-minded individuals who have developed distinctive investment strategies supported by outstanding track records. Sycomore’s managers and employees truly stand out in their expertise area, and we are looking forward to closely working with them.”

Emeric Préaubert, founding partner and CEO of Sycomore Asset Management, stated: “We are delighted to begin a new phase in our long-standing partnership with Generali. Demand for Socially Responsible Investment solutions is rising as investor awareness and appetite increase. Generali’s multi-boutique platform will enable us to capitalize on the significant opportunities that this offers, while also allowing us to retain the unique cultural attributes which have supported our success to date.”

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