UK private equity firm Cinven has partnered with reinsurance group Hannover Re to acquire investment and banking house Old Mutual’s Skandia Germany and Skandia Austria wealth management units for €220m.
The pair had combined funds under management of €4.9bn and post-tax adjusted operating profit for 2013 of €27m. They were part of Old Mutual Wealth and were acquired by the group as part of its takeover of Skandia in 2006.
The transaction is part of Old Mutual Wealth’s commitment to “simplify its operations” in Europe and focus on a select number of core growth markets, it said.
Cinven previously said it has identified financial services as a sector that provides attractive investment opportunities and has created a dedicated team to focus on the sector. After ten years of rapid growth, the sector has been going through a period of reconfiguration since the credit crunch, the firm said, creating opportunities for Cinven as “valuation dislocations” emerge and institutions divest non-core assets or seek partners to raise capital.
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