Challenger has entered into agreement to sell its 30% equity stake in infrastructure boutique, Whitehelm Capital to Patrizia.
Whitehelm, which was part of Fidante Partners, was established in 2014 following the merger of Challenger’s and Access Capital Advisers’ respective infrastructure businesses and was 70% owned by Whitehelp employees and 30% by Challenger.
Meanwhile, Patrizia was a listed real asset manager headquartered in Germany and had €48 billion ($76 billion) in funds under management.
Challenger’s sale consideration would be paid in cash and was expected to be completed in the first quarter of 2022 while Fidante would provide administration and distribution services for up to two years post completion.
Nick Hamilton, chief executive, funds management at Fidante, said: “While it is not our strategy to sell our interest in boutique partners, Patrizia’s offer provided a unique and compelling opportunity for Challenger to deliver value for shareholders.
“Fidante Partners has a healthy pipeline of potential strategic opportunities and we will continue to invest to support its growth.”
Graham Matthews, chief executive of Whitehelm, said: “We are really excited about partnering with Patrizia. They represent a perfect cultural and strategic fit and will enable us to expand our client reach especially in Europe, providing access to their extensive client base”.