The partnership between Natixis Investment Management and H2O Asset Management is coming to an end, as the management of Natixis has announced the sale of its majority stake in the company.
It hasn’t been an easy ride for the H2O Asset Management company which has faced a series of challenges over the years. But it seems Natixis, its major partner, has had enough and has decided to sever ties with the firm.
Jean Raby, Chief Executive of Naxis, stated that the company decided to “unwind” its partnership with H2O AM in November last year.
The final sale depends on regulatory approval
He stated that an agreement has been reached between both companies to part ways amicably. However, Raby pointed out that the conclusion of the deal will depend on regulatory approval.
Since H2O was launched 10 years ago, the French investment bank has been supporting the firm, which has proven to be very profitable for both firms.
Natixis said it didn’t take the decision promptly, adding that the company has been planning about the unwinding decision for several months now.
According to the firm, it took a long time to reach the agreement because both firms want to settle peacefully with all parties satisfied.
According to him, the process of unwinding started properly last November after the liquidity crisis which prompted the French regulator to suspend four of H2O’s funds.
While the funds have been reopened, they were divided into core products, containing side-pocketed funds and liquid securities. Investors have been approved to sell their share of the funds in the side pockets.
A big blow for H2O
H2O invested $1 billion in the business of the German financier, which led to negative publicity in 2019.
But the final straw that crippled the relationship was the revelation of H2O ties with German financier Lars Windhorst and the outflow of over €8bn.
Since then both firms have been trying to work things out, but the final decision has been to end the partnership for both parties to move on.
Although H2O has helped Natixis grow its invested funds in the company, the move could be a huge setback for H2O. The investment firm has benefited immensely from the huge capital inflow coming from Natixis, as well as the company’s huge distribution network. Natixis has helped to bring other investors who have invested over $24 billion worth of funds to the investment management firm.