Lovell Minnick Partners has made a “significant” investment in Spain-based Trea Asset Management, an asset management firm in Spain. No financial terms were disclosed. Rothschild & Co. provided financial advice to Lovell Minnick while GBS Finanzas advised Trea.
NEW YORK and BARCELONA – FEBRUARY 21, 2017 – Lovell Minnick Partners, a private equity firm specializing in financial and related business services companies, today announced that it has completed a significant growth investment in Trea Asset Management (“Trea” or “the Company”), a leading independent asset management firm in Spain. Terms of the private investment were not disclosed.
Founded in 2006 and with offices in Barcelona and Madrid, Trea currently has approximately €2.8 billion of assets under management. The firm manages traditional mutual funds across equities, fixed income, balanced, and fund of funds primarily through exclusive distribution partnerships with its bank partners, its own branded funds and alternative private equity and credit products.
The Lovell Minnick Partners investment will provide capital to support the continued growth of Trea and its acquisition of Banco Madrid Asset Management, which manages €1.3 billion of mutual fund assets primarily through its distribution partnership with Banco Mare Nostrum. Trea will remain majority owned by its Chairman and Founder Carlos Tusquets, who founded Spain’s first private bank (Fibanc), as well as Vice Chairman Ramón Betolaza, and CEO/CIO Antonio Muñoz.
“Trea‘s management team has demonstrated unparalleled success in creating bank partnerships and developing unique products to meet growing demand from retail customers for higher yielding investment options,” said Steve Pierson, President of Lovell Minnick Partners. “We are thrilled to partner with Trea and its talented management team in executing their growth plans. It is also gratifying to source our first proprietary investment in Spain, one of the key markets in Europe where we are seeing attractive growth opportunities in financial and business services.”
Lovell Minnick’s current asset management portfolio companies include Matthews International Capital Management and 361 Capital.
The acquisition of Banco Madrid Asset Management will boost the Company’s assets under management to over €4 billion and create a new distribution partnership with Banco Mare Nostrum, in addition to its existing relationships with Cajamar and Banco Mediolanum.
“We are confident that Lovell Minnick Partners’ proven experience in scaling asset management businesses will help support the growth of Trea and enhance our operations, sales and distribution capabilities,” said Munoz. “We continue to focus on providing a complete range of asset management services to Spain’s underserved retail investors through our bank partners.”
Spain’s asset management industry has grown significantly over the last several years as banks, which account for more than 85 percent of the country’s assets under management, continue to outsource their investment product management activities to experienced third party asset managers, such as Trea. At the same time, Spain’s economic expansion – characterized by well above average Eurozone GDP growth, an uptick in consumer spending, significantly reduced unemployment, and low interest rates – are causing the country’s retail investors to shift their cash out of savings accounts and money market funds into higher returning mutual funds and alternative assets.
Rothschild & Co. served as financial advisor to Lovell Minnick and GBS Finanzas advised Trea.
About Lovell Minnick Partners LLC
Lovell Minnick Partners LLC is a private equity firm with expertise in investing in the financial and related business services sectors. Lovell Minnick provides developing companies with equity capital to support private company recapitalizations, leveraged buyouts, and pursue growth initiatives. Since its inception in 1999, Lovell Minnick Partners has raised $1.7 billion in committed capital and has completed investments in over 30 companies. Targeted investment areas include asset management, financial product distribution, insurance, banks, specialty finance, and related technology and business services. For more information, please visit www.lovellminnick.com
About Trea Asset Management
Trea Asset Management is an independent asset manager with offices in Barcelona and Madrid, specializing in managing both traditional and alternative funds for institutional clients. Trea is registered with the CNMV (Spanish regulator) with European Passport and approved to manage UCIT funds, SICAV, Unit linked and alternative funds in Spain, Ireland and Luxembourg. Trea has been managing the Spanish funds for Banco Mediolanum since 2010, and became the exclusive manager for Grupo Cajamar’s funds since December 2015, and for Banco Mare Nostrum in February 2017.