French insurer Axa to spin out private equity unit


france french parisFrench insurance group Axa is set to spin out its private equity arm in a management buyout.

The buyout will see the insurer cut its stake in Axa Private Equity to 21 per cent with the employees taking a 46 per cent interest, the private equity firm’s CEO Dominique Senequier told the FT.

Senequier will hold a 10 per cent stake in the firm, Assurances du Credit Mutuel will acquire a 13 per cent interest and French family offices will own around 20 per cent of the company.

Axa’s interest is smaller than initially planned due to high demand from employees, said the report.

Senequier said, “Private equity has to be more about shared outcome, shared value and profit with investors, employees and companies we buy.”

Axa will soon close its latest buyout fund on €2.5bn, exceeding its €2bn target, said the FT, citing people with knowledge of the matter.

In the meantime, Axa is reportedly preparing to exit French natural ingredient maker Diana in a deal which could cost more than €1bn.

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