ABN Amroyesterday completed taking a 50 per cent stake in alternative investment firm Absolute Capital four months after the two groups entered into exclusive talks to form a strategic alliance.
The deal, which will lead to the joint-launch of a number of debt products into the market, will see the Netherlands-based bank support Absolute Capital in developing a variety of highly specialised products for the market.
Absolute Capital managing director, Deon Joubert, says the partnership will add momentum to the business as it enters a new growth phase.
“ABN Amro’s contribution from a product and governance perspective will allow us to plan our growth strategy with added confidence. We will work together to enhance the efficiency of existing products and develop new structured debt products,” Sydney-based Joubert says.
Absolute indicated it was in discussions with a major shareholder back in September in a bid to bolster and support its alternative debt operations after buying back one-third of the stake held in it by Swiss firm RMF Investment Group.
ABN Amro financial markets director new business initiatives, Gary Simon, says the Bank is particularly keen to support the development of the structured credit products market.
“We were impressed by what Absolute Capital has achieved in the relatively short period since its establishment. The company will continue to grow its own presence in the market, but there are a number of areas where ABN Amro can assist,” he says.
In light of the large stake-holding, ABN Amro financial markets head Col McKeith along with Simon will become executive directors of Absolute Capital.
ABN Amro will also look to appoint a non-executive director to the board over the coming months.
In December Joubert stressed the deal was not financially motivated, but more a case of aiming to provide both institutional and retail investors with a high level of confidence in its business.
