Aretex Capital Partners has agreed to acquire Dallas-based Alerian, a provider of energy infrastructure indices and market intelligence. No financial terms were disclosed. The transaction is expected to close in the second quarter of 2018. Barclays is serving as financial adviser to Aretex on the deal with Ropes & Gray LLP and Sheppard Mullin Richter & Hampton LLP providing legal counsel.
NEW YORK–(BUSINESS WIRE)–Aretex Capital Partners (“Aretex”), a global private equity firm, today announced that it has entered into a definitive agreement to acquire Alerian, the market leading provider of energy infrastructure indices and market intelligence based in Dallas, Texas. The terms of the transaction were not disclosed.
Alerian develops and maintains a series of indices for the energy sector and equips investors to make informed decisions about investments in energy infrastructure. Alerian licenses its indices to third parties for the creation of investment vehicles, such as Exchange Traded Products (ETPs). These investment vehicles are structured products that are separately managed by product issuers, including well-known global asset managers and investment banks. ETPs are co-branded with Alerian’s name and marketed by product issuers to retail and institutional investors. As of April 30, 2018, Alerian’s indices were used by ETPs with assets under management over $14 billion.
Alerian will continue to be led by its current CEO, Kenny Feng. The underlying indices will continue to be operated in the exceptional manner in which they have historically been constructed and overseen. Mr. Feng will roll over a substantial portion of his sale proceeds into Alerian as part of the transaction.
Mr. Feng said, “Our partnership with Aretex will enable us to dedicate additional resources to the business and further support our partners. We have been impressed with Aretex’s collaborative approach, and we are excited to grow the business together. We believe Alerian is well positioned for growth given the long-term, secular trends in the financial services sector, including the shift from active to passive investing, and its world-class reputation in the energy infrastructure end-market.”
At closing, John L. Jacobs will join the Board of Directors of Alerian as its Chairman. Mr. Jacobs formerly served as Executive Vice President of Nasdaq, where he was responsible for all aspects of Nasdaq’s Global Information Services (GIS) business including indexes and data. Mr. Jacobs is a veteran in the index and ETF ecosystem, including the launch of the Nasdaq-100 Index Tracking Stock (QQQ), one of the most successful financial products in stock market history.
Mr. Jacobs commented, “I am excited to be joining the Alerian Board at this dynamic time in its history. Alerian is one of the premier and most respected brands in the financial services industry and I look forward to working with Kenny Feng and the Aretex team to strengthen Alerian’s partnerships, add product licensees, launch new products, and develop new sources of revenue.”
Aretex Capital Partners was founded by its Managing Partners, Sergio D’Angelo and Andrew Feller. The Alerian transaction will be the initial investment by Aretex Capital Partners Fund.
Mr. Feller said, “Alerian is a strong, growing business with exceptional leadership and significant potential to expand its platform globally. We are excited to partner with Kenny Feng and John Jacobs as we pursue the next chapter in Alerian’s growth. Alerian is representative of Aretex’s strategy of pursuing proprietary opportunities, partnering with proven management teams, and emphasizing global growth and business building in order to create long-term value.”
The transaction is expected to close in the second quarter of 2018, subject to receipt of required regulatory approvals and other customary closing conditions. Barclays is acting as financial advisor to Aretex on the acquisition of Alerian. Ropes & Gray LLP and Sheppard Mullin Richter & Hampton LLP are acting as legal counsel to Aretex on the transaction.
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of April 30, 2018, over $14 billion was directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancing, please visit http://www.alerian.com/.
About Aretex Capital Partners
Aretex Capital Partners is a global private equity firm focused on investments primarily in North America and Europe. Aretex partners with entrepreneurs and management teams with a proven track record of success and seeks to create value by helping businesses access international markets and drive sustainable growth. Launched in 2018 by Sergio D’Angelo and Andrew Feller, Aretex maintains offices in New York and London.