LONDON: Tetragon Financial Group Limited today announced that Hunter Point Capital (HPC), an independent investment firm providing capital solutions and strategic support to alternative asset managers, has agreed to acquire a minority stake in Equitix, a leading international investor, developer and fund manager in infrastructure.
HPC is acquiring a 16.1% stake in the business at an implied enterprise value of £1.3 billion, excluding net debt. The stake is being acquired from two existing shareholders: approximately 14.6% from TFG Asset Management, Tetragon’s diversified alternative asset management business, and 1.5% from Equitix management.
Founded in 2007, Equitix was acquired by Tetragon in 2015. Since then, its assets under management have grown from £1.3 billion to over £11.7 billion, with a broad sector reach including social infrastructure, transport, renewable power, environmental services, network utilities and data infrastructure.
Stephen Prince, CEO of TFG Asset Management, said: “Following ten years of strong growth, Equitix is at an inflection point. This transaction enables Tetragon to realize some of the value created in the business while remaining invested with a trusted partner in a sector where we continue to see significant runway for innovation and growth. In HPC, we found an experienced minority partner, bringing additive relationships and expertise to enhance Equitix’s continued innovation and development.”
Avi Kalichstein, CEO and Co-Founder of HPC, said: “We are thrilled to add Equitix to our GP Stakes portfolio and to join Tetragon in this next phase of exciting growth for one of Europe’s leading infrastructure managers. The Equitix team has built a market-leading firm offering a differentiated value proposition to investors. We look forward to engaging with Equitix as it continues to scale its platform globally and launch new products to meet the evolving needs of institutional investors, building on its prior experience of value creation and impact.”
Hugh Crossley, CEO of Equitix, commented:”Equitix was founded as a responsible long-term investor in infrastructure assets, primarily focused on the U.K. It has now evolved into an infrastructure developer and fund manager with over 300 assets in 24 countries and more than 400 employees. I am incredibly proud of what Equitix has achieved; we are a trusted partner managing global infrastructure assets, which we believe materially contribute to the lives of the communities they serve. I look forward to leading our team as it seeks continued growth and success in partnership with Tetragon—and now with HPC onboard.”
Equitix remains part of Tetragon’s platform for alternative asset managers, TFG Asset Management, which will retain majority ownership alongside HPC and management. The transaction will not affect Equitix’s governance, investment process or day-to-day operations.
HPC’s acquisition is subject to customary closing conditions, including regulatory approvals.
BofA Securities served as financial advisor and Dechert LLP as legal counsel to Tetragon. Latham & Watkins LLP advised HPC, while Ashurst LLP represented Equitix management.
Tetragon is a Guernsey-based closed-ended investment company. Its non-voting shares are listed on Euronext Amsterdam and traded on the Specialist Fund Segment of the London Stock Exchange. Tetragon Financial Management LP serves as its investment manager.