Canadian asset management private equity firm Walter Global Asset Management has acquired a minority stake in UK- and Toronto-based Validus, a financial risk management firm. No financial terms were disclosed.
Walter Global Asset Management (“WGAM”) is pleased to announce that it has acquired a minority stake in Validus, a financial risk management firm with offices in both the UK (London and Eton) and Canada (Toronto), whose clients include private asset managers, institutional investors and corporations.
This fourth transaction in a year marks WGAM’s second international partnership and most significant capital allocation to date, enabling the firm to continue diversifying its portfolio of boutique asset management firms and distributors, and aligning it for the first time with an innovative strategic services provider in the financial industry.
“Validus sets itself apart with its distinctive approach to financial risk management, high quality team and exclusive technological platform – not to mention very strong growth potential,” said WGAM’s chief executive officer and founding partner Sylvain Brosseau. “We’re thrilled to partner with such talented and best-in-industry associates to help Validus reach new heights of success.”
As a firm that was created to tackle the requirements for robust risk management in the aftermath of the Global Financial Crisis, Validus has positioned itself in the industry with a unique business model which relies on the development of bespoke financial risk management strategies and the ability to execute these in the markets, backed by a sophisticated technological platform. “In the current global context, Validus is extremely well-positioned to respond to organizations’ growing needs to understand and manage their operational risks amidst a market that will continue to grow in the coming years,” added Mr. Brosseau.
“We already have a strong European presence, and with an established foothold in North America we are already on track to achieving our long term goal of becoming the world’s leading independent risk management firm,” said Kevin Lester, Managing Partner, Validus. “This new partnership is a significant step toward reaching this goal. For Validus, WGAM is a formidable partner that brings to the table not only patient capital, a long-term approach to partnerships and a network of contacts, but also expertise from a solid team and the opportunity to join a platform with other specialized boutique firms.”
WGAM will collaborate with Validus as it pursues the next steps of its growth strategy: continuing its international expansion with a focus on North America and Asia, developing new client sectors — such as pension funds and family offices — and further investing in its technology platform to expand on capabilities that are already highly valued by its large and fast-growing client base.
Founded in 2010, Validus Risk Management is an independent technology-enabled financial services firm specializing in managing market risks such as FX, interest rates and commodities. With industry-leading analytical tools, market expertise and proprietary technology, Validus manages over US$300 billion in risk exposure for some of the largest institutional investors, fund managers and corporations across the globe.