Augsburg-based Patrizia acquisition of independently owned infrastructure manager Whitehelm will triple its infrastructure assets under management to circa €5bn. The deal will also expand its portfolio of investments focused on smart cities and digital infrastructure, de-carbonisation and energy transition, water and environmental services, and social infrastructure.
The initial purchase price payment is €67 million payable in cash and Patrizia treasury shares. The total purchase price is based on an earn-out agreement and can reach a low three-digit €-millions amount if mid-term revenue growth targets are met. Whitehelm shareholders have agreed to a lock-up period for the Patrizia consideration shares.
At present, Whitehelm currently manages €3.2 billion AUM with €1.6 billion additional commitments and has over €22 billion funds under advice for institutional, government, and private clients in Australia.
Whitehelm has more than 60 investment specialists in Australia and Europe and a track record of more than 100 infrastructure investments. The firm has achieved an internal rate of return of 11.9% on global core infrastructure investments for its clients since inception.
Australian presence will widen the net for Patrizia
Whitehelm’s investment clients are predominantly pension funds located in APAC and Europe. The firm has offices in Sydney, Canberra and London, which will also extend Patrizia’s global reach.
“The combination of our strengths, expertise and global footprint is highly complementary and will enable us to create significantly more investment choices for our clients”, said Wolfgang Egger, CEO and founder of Patrizia.
He said the two firms also represent a perfect cultural fit. “We both have a strong track record as independent investment managers being close to our clients and creating value for them. And we share a clear commitment to sustainability and making an impact.”
The acquisition also accelerates the execution of Patrizia ’s sustainability strategy which is aiming for net zero carbon emissions in respect of more than 70% of AUM by 2040.
Closing of the transaction is subject to regulatory approvals and is expected to take place in Q1 2022.