Global real assets fund manager Patrizia has acquired infrastructure investment manager Whitehelm Capital, tripling its infrastructure assets under management (AUM) to €5 bn.
The initial purchase price payment for the fully complementary acquisition is €67 mln payable in cash and Patrizia treasury shares. However, the total purchase price is based on an earn-out structure and could reach a low three-digit € mln amount if ambitious mid-term revenue growth targets are met.
Whitehelm, an independently owned infrastructure manager with a 23-year track record, has made over 100 infrastructure investments, and boasts more than 60 investment specialists in Australia and Europe.
Whitehelm’s investment clients are predominantly pension funds located in Asia-Pacific (APAC) and Europe. With offices in Sydney, Canberra and London, Whitehelm is expected to further expand Patrizia’s global reach and strengthen its footprint in APAC.
The deal expands Patrizia's assets under management (AUM) to over €50 bn, in line with its mid-term growth strategy. Bringing the firm's infrastructure investments to €5 bn, Patrizia said that it aims to grow this segment in the mid-term to €15-20 bn.
Whitehelm’s product offering and investment expertise should significantly broaden Patrizia’s portfolio of investment solutions, with a particular focus on smart cities and digital infrastructure, de-carbonisation & energy transition, water and environmental services, and social infrastructure, across equity, debt, and public listed infrastructure investments.
Wolfgang Egger, CEO and founder of Patrizia said: 'We are delighted to welcome Whitehelm to Patrizia.
'The combination of our strengths, expertise and global footprint is highly complementary and will enable us to create significantly more investment choices for our clients.
'We both have a strong track record as independent investment managers being close to our clients and creating value for them. And we share a clear commitment to sustainability and making an impact. This acquisition represents a key milestone to strengthen our offering as a leading partner for global real assets.'
Whitehelm currently manages €3.2bn AUM with €1.6 bn additional commitments, and has over €22 bn funds under advice for institutional, government, and private clients in Australia.
Thomas Wels, Co-CEO Patrizia, added: 'Whitehelm is a perfect strategic match for Patrizia.
'With this transformational acquisition that significantly expands our infrastructure expertise, we ascend to the next level as a global partner for real assets. And we strengthen our footprint in APAC to support our growth opportunities in the region.'
Graham Matthews, chief executive and founding shareholder of Whitehelm, commented: 'It was absolutely essential for us to find the right partner who brings clear additional value to our clients, embraces long-term thinking and has a strong track record in the industry.
'Patrizia will enable us to expand our client reach in Europe and offer attractive infrastructure investment opportunities to Patrizia’s large international institutional and private investor base. The combination of our expertise, portfolio offering, and global footprint will bring many attractive long-term investment opportunities to all our stakeholders.'
Patrizia said that global infrastructure investments are expected to rise by 35% from currently $2.8 trn to over $3.8 trn a year by 2040, according to the G20 Global Infrastructure Outlook.
The acquisition also accelerates the execution of Patrizia’s sustainability strategy. Whitehelm is a signatory of the United Nations Principles for Responsible Investments, UN PRI, and achieved an A+ rating from the initiative, the highest score for overall implementation of ESG in its strategy and governance activities.
Whitehelm recently celebrated the fifth anniversary of its low carbon core infrastructure fund.
