Lloyd Fonds AG acquires a majority interest in Hamburg-based asset management company with EUR 350 million assets under management
- Acquisition of 90 percent of asset management company Lange Assets & Consulting GmbH, put option for the remaining 10 percent
- Further step towards the implementation of the 2019+ strategy
- Money-market oriented fund to become part of the Lloyd Fonds retail funds
- Lloyd Fonds AG to move into new headquarter in Hamburg in Q2 2019
Hamburg, December 4, 2018. The management board and supervisory board of Lloyd Fonds AG (Deutsche Börse Scale, ISIN DE000A12UP29) today passed resolutions to acquire a majority interest in Lange Assets & Consulting GmbH in a further step towards implementing the company’s 2019+ strategy. The acquisition is being executed in the form of a combined cash/in kind capital contribution comprising 90 percent of Lange Assets & Consulting GmbH’s capital against the issuance of new Lloyd Fonds AG shares and payment of an additional cash component. In addition, the seller will have a put option regarding the remaining 10 percent of the shares, which it may exercise after the expiry of four years at the earliest. The total sum of all the purchase price components depends on Lange Assets & Consulting GmbH’s earnings as well as the development of the assets under management. The purchase price payments will be made over a period of seven years, with the total purchase price expected to the upper single-digit million-euro range.
The contribution agreement with the shareholders of Lange Assets & Consulting GmbH will be notarized today. The execution of the contribution agreement is subject to certain conditions precedent including the successful completion of owner control proceedings by the German Federal Financial Supervisory Authority and is expected earliest by March 31, 2019 with effect January 1, 2019.
Lange Assets & Consulting GmbH: EUR 350 million of assets under management
Lange Assets & Consulting GmbH was founded at the end of 2005 under the name AVG Vermögensverwaltungs-GmbH and is licensed to provide financial services in accordance with section 32 (2) sentence 1 of the German Banking Act. The founding shareholders are the Hamburg businessmen Axel Sven Springer, John Jahr, Oliver Heine and the managing partner Thomas Lange. Based in Hamburg, it currently has around EUR 350 million assets under management and, in addition to asset management for private and institutional clients, also provides advisory services for the money-market oriented fund ASSETS Defensive Opportunities UI (share class A, WKN: A1H72N, share class B, WKN: A1JGBT).
Systematic implementation of the 2019+ strategy
With the acquisition of Lange Assets & Consulting GmbH, Lloyd Fonds AG is building up its expertise in asset management for wealthy clients as part of the implementation of its 2019+ strategy. LF Assets, the third pillar of the new business model, entails classic product offerings for family offices as well as for private wealthy clients and institutional investors.
Achim Plate, Chairman of the Supervisory Board of Lloyd Fonds AG: “I am delighted that we have been able to gain in Thomas Lange and his team. They are experienced asset managers who enjoy a first-class reputation in the industry. As asset managers, we will thus be offering a unique range of services in a dynamic and competitive environment moving forward: Lloyd Fonds retail funds with active asset management, digital portfolio management and individual, direct asset management for private wealthy and institutional clients, as well as for family offices.”
Thomas Lange, Managing Partner of Lange Assets & Consulting GmbH, is also convinced of the prospects offered by Lloyd Fonds AG 2019+ strategy: “The fact that we have to change became clear to me with the implementation of the last MiFiD II reform, if not before. I am all the happier that we have been able to find a Hamburg-based solution for our future and will be backed by such a strong team. Looking forward, I will be able to do what I enjoy most, namely attending to my clients’ needs and working on ASSETS Defensive Opportunities UI.” John Jahr, shareholder of Lange Assets Consulting GmbH: “With this step, the shareholders see the foundations laid for a highly diversified partnership with Lloyd Fonds AG in the future”.
Assets under management forecast achieved for LF Assets
Looking forward, growth in assets under management is to be the key driving force for Lloyd Fonds AG’s earnings. As reported at the 2018 annual general meeting, the company projects assets under management of more than EUR 1 billion – combined in LF Line and LF System – plus more than EUR 0.2 billion in LF Assets in 2019. Klaus M. Pinter, CFO of Lloyd Fonds AG: “The acquisition of Lange Assets & Consulting, which has total assets of around EUR 350 million under management, will allow us to achieve our predicted target in the segment LF Assets in 2019. I am looking forward to working with Thomas Lange and his team.”
Money-market oriented fund to become part of the Lloyd Fonds retail funds
The money-market oriented ASSETS Defensive Opportunities UI fund, which will also be managed through Lange Assets & Consulting GmbH in the future, will supplement Lloyd Fonds’ own planned actively managed range of retail funds comprising equity, mixed and fixed-income funds. As reported in November, an experienced team of three fund managers has been recruited for this purpose. Effective January 1, 2019, Christian Reindl, Chartered Financial Analyst (CFA), Maximilian Thaler, CFA, and Dr. Tobias Spies will be strengthening the Hamburg-based asset manager’s newly opened Munich office.
New headquarter at the Alster from Q2 2019
Lloyd Fonds AG will relocate its headquarter in Hamburg. The non-captive, listed asset manager will be in the new office building located at “An der Alster 42”. Relocation is planned for the 2nd quarter of 2019.