- Advertisement -
- Advertisement -

Related

Borea Deal Sets Fund Boutique Valuation Benchmark

Latest Report

- Advertisement -

Frendegruppen – Norway’s second-largest banking partnership – announced about a year ago its agreement to acquire a majority stake in the Norwegian fund boutique Borea Asset Management. Frende Kapitalforvaltning, a subsidiary of Frendegruppen, acquired the 70 percent stake in the boutique for NOK 303.6 million, according to AMWatch. This transaction values Borea Asset Management at approximately NOK 433 million, or €37.5 million.

Frende Kapitalforvaltning’s acquisition of a 70 percent stake in Borea Asset Management offers a useful benchmark for the valuation of Nordic boutique fund managers. The implied valuation of NOK 433 million corresponds to approximately 13.6 times Borea’s net earnings for 2023, or around 10.7 times its earnings before interest and taxes (EBIT) for the same year. 

“It’s a good deal. The company is already generating good earnings, and it will continue to build on its focus on private customers,” says Jan Erik Kjerpeseth, CEO of Sparebanken Norge – one of the member banks in Frendegruppen. “We’re paying for a foundation that would have cost us significantly if we had to build it ourselves. Strategically, we see this as an important purchase with an infrastructure that we can build on,” according to Kjerpeseth.

“It’s a good deal. The company is already generating good earnings, and it will continue to build on its focus on private customers.”

Jan Erik Kjerpeseth, CEO of Sparebanken Norge.

Established in 2005, Borea Asset Management has focused on managing capital for professional investors, primarily through special funds with higher minimum investment requirements. As part of the acquisition, the firm has already begun expanding its product range to serve the broader retail market, aiming to reach the 800,000 to 1 million customers served by the consortium of independent banks within Frendegruppen.

At the time of the acquisition announcement in mid-2024, Borea Asset Management managed just over NOK 10 billion (approximately €900 million) across one equity fund and four fixed income-focused funds. Since then, the firm has launched three additional funds tailored to the needs of Frendegruppen’s clients. As of the end of May, Borea oversees NOK 13.6 billion (approximately €1.18 billion) in assets under management across eight funds. Its special funds — comprising one equity and three fixed income strategies — continue to account for the majority of its asset base. 

With Frende Kapitalforvaltning acquiring a 70 percent stake in Borea Asset Management, the remaining 30 percent remains with the previous ownership group – a deliberate decision to align incentives between the new and existing owners and support the firm’s continued development. “When you share ownership and have the same incentives, it also increases the likelihood of success. It makes for stronger ownership and better conditions for building something great together over time,” says Kjerpeseth. 

“When you share ownership and have the same incentives, it also increases the likelihood of success.”

Jan Erik Kjerpeseth, CEO of Sparebanken Norge.

“A key factor in our decision was the opportunity for market expansion,” Calix Black Ndiaye, a Director at Borea Asset Management, previously told HedgeNordic. “Frendegruppen has an extensive distribution network that will significantly enhance our reach, enabling us to serve new regions and customers more effectively,” he explained. “This larger footprint provides a unique opportunity for growth, allowing us to leverage their infrastructure while continuing to build on our own strengths.”

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Othania’s All-In-One Fund Celebrates Five Years

Danish fund boutique Othania is celebrating the five-year anniversary of Othania Balanceret Makro, its all-in-one fund blending equity, bond, and alternatives exposure through Exchange...

Atlant Fonder Crosses SEK 10 Billion Milestone

Strong performance and steady inflows have propelled alternative fund boutique Atlant Fonder past the SEK 10 billion milestone in assets under management. Its flagship...

Nordea PM Joins Lancelot Global as Co-Manager

Lancelot Global, a long-only equity fund with flexible net exposure ranging from 60 to 120 percent, has strengthened its portfolio management team with the...

Quirky Questions – or, A Peoples Business

If asset management were only about numbers, we could all go home and let the calculators get on with it. But calculators are dull...

Navigating CLOs Through ETFs: Opportunities in AAA-Rated Tranches

By UBS Asset Management: Collateralized Loan Obligations (CLOs) have long been a cornerstone of the U.S. securitized products market, evolving from a niche institutional investment...

From Core to Alternatives: The ETF-Driven Approach of a Finnish Wealth Manager

Wealth managers are tasked with designing investment portfolios that align with clients’ needs, objectives, risk tolerance, preferences, and financial circumstances. While high-net-worth clients often...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.