#London #United Kingdom #Equitix #Tetragon #Hunter Point

Tetragon Financial Group Sells Minority Stake in Equitix

Tetragon Financial Group Limited announced a significant strategic move involving its subsidiary, Equitix, a key player in infrastructure investment, development, and fund management. Hunter Point Capital (HPC) has reached an agreement to acquire a 16.1% minority stake in Equitix, valuing the firm at an impressive £1.3 billion, excluding net debt. This transaction signals a pivotal moment in the evolution of both companies, offering new growth opportunities on the horizon.

Background of the Transaction

HPC, an independent investment firm known for its support of alternative asset managers, was able to secure its stake from two existing shareholders: approximately 14.6% from Tetragon’s diversified asset management business and 1.5% from members of the Equitix management team. Equitix, founded in 2007, became part of Tetragon's portfolio when it acquired a controlling interest in 2015. Since then, Equitix has seen exponential growth, with its assets under management soaring from £1.3 billion to over £11.7 billion across various sectors such as social infrastructure, renewable energy, and utilities.

Strategic Insights

Stephen Prince, CEO of TFG Asset Management, highlighted the positive trajectory of Equitix over the past decade. He noted that this move would not only allow Tetragon to unlock some of the value it created but also maintain its connection with a reliable partner, HPC, in a sector ripe for innovation. The deal is intended to fortify Equitix's position as a leading infrastructure manager while enabling it to expand its reach and product offerings.

Avi Kalichstein, CEO and Co-Founder of Hunter Point Capital, expressed excitement over joining forces with Tetragon and Equitix. He emphasized HPC's commitment to growth, stating that Equitix's market-leading value proposition would provide synergies that benefit both the firm and its investors. Kalichstein noted that HPC views Equitix as a key player in the evolving landscape of institutional investment, indicating that they are eager to support the firm as it scales globally.

Vision and Leadership

Hugh Crossley, CEO of Equitix, proudly reflected on the firm’s journey from a UK-focused investor to a significant international player in infrastructure management, boasting over 300 assets in 24 countries. He highlighted the essential role of responsible investment in infrastructure, stating that the company contributes meaningfully to community well-being. Crossley looks forward to the opportunities that collaboration with Tetragon and now with HPC will bring in terms of continued growth and innovation.

Governance and Future Prospects

Despite the changes brought about by HPC's acquisition, Tetragon will remain the majority owner along with management and HPC. Importantly, governance structures and Equitix's investment strategies will remain unaffected by this deal, ensuring continuity in management and operations. This stability should bolster investor confidence as the company navigates its future in a rapidly changing market.

Regulatory approvals and customary closing conditions still need to be addressed before finalizing the acquisition.

Conclusion

This transaction marks a notable point for Tetragon Financial Group and Equitix as they venture into this new chapter with Hunter Point Capital. As both firms work together to enhance Equitix's offerings, it will be intriguing to observe how this partnership will influence the infrastructure investment landscape, particularly in embracing innovative solutions and sustainable practices. The potential for growth and development remains substantial as they leverage their combined expertise and resources.