Mangold Courts Resscapital

Stockholm (HedgeNordic) – Today, Swedish investment bank Mangold announced a bid to acquire a quarter of the existing capital of Stockholm-based alternative asset management Resscapital AB, who currently manages a Danish listed fund, Ress Life Investments A/S, investing in US life insurance contracts. The bid amounts to SEK 9.3 million (€900K), of which SEK 7 million paid in cash and the rest in newly issued Mangold shares at a price of SEK 807.32. The amount offered for Resscapital’s shares corresponds to SEK 7/share.

Gustaf Hagerud, CEO of Resscapital welcomes the intentions of Mangold. “Both Resscapital’s board of directors and its management are pleased to see Mangold’s interest and commitment to our company. In the current market, characterised by low-interest rates and record high equity valuation, the risk level has increased for every type of investor. The vehicle we manage focuses on an asset class uncorrelated with traditional asset classes. Therefore, this represents a unique opportunity to diversify and improve the return for a given level of risk. I am pleased that Mangold has decided to get involved in this alternative asset class. The types of customers Mangold approaches are different from those we currently have reached in our fund. We, therefore, see a partnership as beneficial for both parties.”

Mangold’s motivation and the positive reaction from the board may not be entirely unexpected, given the pedigree of Resscapital’s latest board addition. Per Åhlgren, who recently joined as non-executive director, is the co-founder and Chairman of Mangold. It may however still take some time to close the transaction, as Resscapital’s shareholders have to be consulted and reach an agreement on the sale. “While the board’s recommendation is positive, it will be up to the shareholders to take the ultimate decision,” confirms Hagerud.

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Aline Reichenberg Gustafsson, CFA is Editor-in-Chief of HedgeNordic.com and NordSIP.com. She has 18 years of experience in the asset management industry in Stockholm, London and Geneva, including as a long/short equity hedge fund portfolio manager, and buy-side analyst, but also as CFO and COO in several asset management firms. Aline holds an MBA from Harvard Business School and a License in Economic Sciences from the University of Geneva.

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