GCS Capital has signed a sale and purchase agreement to acquire Dexia Asset Management (DAM) from the Brussels-based banking group Dexia, subject to regulatory approvals.
GCS Capital said its strategy is to maintain Europe as DAM's centre of excellence, build upon the strengths of the existing platform by broadening its distribution reach to new markets, including Greater China and the Middle East, and enhance its product offerings to clients.
In addition to this acquisition, GCS Capital has signed a strategic partnership agreement with Industrial and Commercial Bank of China (ICBC). The firm said this will help DAM to gain greater insights into emerging markets, access to market-leading investment products and the distribution network of a financial services institution in Greater China.
GCS Capital said it also sees a significant opportunity to offer Asia-focused solutions to DAM's existing European and Australian investors.
"GCS Capital is delighted to partner with DAM's experienced management team and together with our strategic partner, ICBC, broaden the franchise across emerging markets to capture capital flows," said CEO of GCS Capital, Huan Guocang.
As a result of the cooperation, DAM products will become available to investors in Asian markets through ICBC's branch network. GCS Capital said it also sees a big opportunity to offer Asia-focused solutions existing European and Australian investors.
"Asian investors are increasingly interested in genuine European expertise to identify value opportunities, while in China the financial services industry is both expanding and evolving - this presents an attractive set of circumstances where we see considerable opportunity," said Guocang.
"DAM is an award winning European-based asset management platform with a multi-regional presence. GCS Capital's clear growth strategy is to leverage the combined strengths of the existing platform and our strategic partners to broaden distribution and enhance product offerings across additional geographic regions," added senior partner of GCS Capital, Mike Powell.
The development of these east-west capital flows will be facilitated through new regional hubs in Hong Kong and Doha.
The acquisition is subject to the fulfilment of certain conditions including regulatory approval.