Two European investment firms will merge their fund of hedge funds business to create a joint-venture with US$3 billion in assets under management.
Under the terms of the deal, La Française will take a 40% stake in Tages Capital in exchange for its US$1 billion fund of funds unit, the second largest in France. Several managers will also move from La Française to Tages, which will assume management responsibility for both firms' funds of funds.
The deal is subject to regulatory approval.
Both Tages and La Française focus on continental Europe; the former, though based in London, has an office in Milan, Italy, while the latter is based in Paris. The combined fund of funds will be the largest such firm in France.
"The announced partnership is a further validation of our approach to alternative multi-manager investment," Panfilo Tarantelli, who founded Tages in 2011, said.
The firms' other business lines—Tages has corporate finance advisory and distressed debt units, while La Française runs €40 billion in assets outside of its funds of funds—will remains independent.