Stockholm (HedgeNordic) – Swedish fund manager Norron is set to merge with Aker’s asset management company ICP. Having been the main owner of Norron Asset Management since its inception in 2011, Norwegian industrial giant Aker ASA has signed an agreement of intent with the remaining owners to acquire the remaining stake in Norron.
Pending approval from the authorities, Norron’s operations will merge with Industry Capital Partners (ICP) under the umbrella of a new entity with the working name ICP Norron. ICP was founded by former Norwegian oil fund CEO, Yngve Slyngstad. “This deal should be viewed as an effort to add resources and capabilities to both organizations,” explains Ulf Frykhammar, CIO and Managing Partner at Norron Asset Management. The merger will double Norron’s management team with the addition of the ICP team led by Petter Johnsen, the former Chief Equities Officer at Norges Bank Investment Management. The staff will be given the opportunity to reinvest in the new company, maintaining an ownership incentive for operational partners.
“This deal should be viewed as an effort to add resources and capabilities to both organizations.”
“From Norron’s perspective, our investment team will double in size. We are adding capabilities and competencies in areas where we haven’t been able to build internally,” says Frykhammar. “This is a forward-looking effort with the aim to strengthen, broaden, and make sure that our offering is relevant, future-proof and aligned with current and future market trends.”
Norron’s current product range comprises six funds: two absolute return funds, two fixed income and two listed equity funds, overseeing approximately SEK 8 billion or about €700 million in assets under management. “When it comes to our funds within absolute return/hedge mandates, nothing will change,” says Frykhammar. “We will continue to develop our investment processes and, of course, evaluate and extract the competence synergies we add by taking part in this transaction.”
“When it comes to our funds within absolute return/hedge mandates, nothing will change.”
The planned merger between Norron and Aker’s ICP also aims to broaden both organizations’ geographical presence and client reach. “Standalone, Norron has mainly been distributing its products in the Nordic region. With the merger concluded, we are hoping to get a better international and institutional reach among our client base,” argues Frykhammar. “The purpose of the transaction is to add new competencies and capabilities and to broaden our footprint in terms of investment universe and client reach. I view it as a very positive event for Norron and our clients.”
Photo by Vilde Blixt.
