The Global Mid-Market Specialist
Stable recurrent fee business in the first half of 2016. The revenues decreased by 2.9%, although the investment banking revenues grew by 19.7% and the recurrent management fees by 8.3%. The overall decrease is mainly due to the absence of extraordinary revenues in the period (in 1H 2015, €5.5 million of extraordinary revenues were recorded). In addition, the first semester’s revenues do not yet reflect the full fees corresponding to the c. €800 million of new assets under management raised so far in 2016.
The ordinary net profit amounted to €5.2 million (a 36.6% YoY decrease) and was entirely generated by the recurring business activities of the Group’s investment banking and asset management lines. The decrease is due to the increase in ordinary expenses related to the international growth of the Group and by the absence of extraordinary revenues in the period.
Strong activity in the first semester:
Year-to-date, the asset management division has raised c. €800 million from third party investors in the different asset classes: €400 million in the first closing of the Alantra Private Equity Fund III, €212 million for the EQMC Fund (Alantra’s European active fund), €128 million in the Wealth Management unit, €27 million in the Private Debt Fund and the remaining €19 million in Real Estate. This is a key achievement that reinforces Alantra’s asset management business and contributes to increasing the Group’s recurrent revenues.
At the June close, the Group had €3.2 billion of assets under management.
As for the investment banking division, it has advised 52 transactions (60% cross-border), 37 of which were M&A deals ( 73% sell-side advisory), 10 were capital markets transactions, two debt capital markets transactions (aggregated value of €80 million) and 3 fairness opinions (aggregated value of €45.1 billion).
This pace of activity positioned the Group among the top 20 M&A advisors globally in the first 6 months, according to Mergermarket.
International expansion: entering Latin America and opening of offices in Lisbon and Beijing
In this first semester, Alantra has entered the Latin American market through the acquisition of 50% of Landmark Capital in two steps. Based in Chile, Landmark has offices in Brazil, Colombia and Argentina. It was founded in 1998 and is one of the leading mid-market M&A advisors in Latin America. In the last five years, the firm has closed more than 40 transactions.
Alantra has also opened offices in Lisbon and Beijing, by means of the incorporation of two highly reputed senior professionals. Alantra is now present in 18 countries, including the main European, Asian and Latin American markets and the US.
Acquisition of SYZ’s 46% stake in the Group’s private banking unit. Alantra and the management team will hold 100% in the private banking business. This unit has proved valuable not only for the segment itself, but for the whole Group from a strategic point of view. From a business point of view, the bankers’ access to Spanish family businessmen has clear synergies with the investment banking and asset management activity divisions. Also, from a financial point of view, the business allows the Group to have recurrent and growing income, increasing its capacity to generate profits for its shareholders in the mid- and long-term. The transaction is subject to CNMV’s approval (Spanish Stock Market regulator, by its acronym in Spanish)
Maintaining a strong balance sheet. At June close, Alantra held €167.5 million of shareholder’s equity attributable to the parent. Also, the Group’s cash stood at €68.5 million after undertaking corporate development transactions (€17.9 million), May’s dividend payment of €16.5 million and the investment of €10 million in a financial instrument which has been reclassified to non-current assets.
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