Two years after the reshuffling of its shareholder base, Patrival is accelerating its development.
BY ARNAUD LEFEBVRE, September 28, 2022
Seeking to strengthen its market share in the region, the independent wealth management firm Patrival, based in Wasquehal, has just acquired the entire share capital of Magenta Patrimoine, a private wealth management firm based in Lille. Through this transaction, the group gains more than €115 million in assets under management and around one hundred new clients.
Two years after the reshuffling of its shareholder base, Patrival is accelerating its development. Having expanded its workforce and invested in the digitalization of its solutions, the independent wealth management firm, located in Wasquehal, has just acquired Magenta Patrimoine, a private wealth management firm based in Lille. Patrival had been actively looking for regional targets for several months, aiming not only to scale up but also to raise its profile, and directly approached Magenta Patrimoine’s three executives toward the end of the first quarter.
“The company offered the double advantage of operating in the same line of business as ours, namely private wealth management, and of being a geographic neighbor, two criteria we had set beforehand,” explains Vincent Ténière, Managing Director and Partner at Patrival. “Moreover, I already knew one of its partners, Jean-Pierre Louf, while another, Nicolas Duriez, had worked at Patrival about twenty years ago. The trust needed for this type of transaction was therefore naturally in place.”
An acquisition debt put in place
Although it had not launched a sale process, the Magenta Patrimoine team was receptive to this expression of interest. “The asset management sector is very tightly regulated, and regulatory constraints are increasing,” continues Vincent Ténière. “That is why smaller firms are considering joining a larger group, which also allows them to offer their clients a broader range of solutions and services.”
Highlighting “a very similar culture and DNA,” the two entities quickly agreed on the terms of their combination, which was sealed over the summer. The transaction amount remains confidential. The deal was financed 25% with equity and 75% with debt. The debt was provided by CIC Nord-Ouest and Banque populaire du Nord, the two banks that make up Patrival’s banking pool.
More than two hundred client families
Since this acquisition takes the form of an absorption of Magenta Patrimoine, its name will disappear within a few weeks. Its arrival within Patrival’s perimeter will allow the combined entity to increase its assets under management by €115 million, bringing them to €1.1 billion (of which €850 million relates to direct clients), and to welcome around one hundred new clients. Serving wealthy families and entrepreneurs who are from and/or based in northern France, Patrival now claims around 700 clients, from nearly 200 families.
Although the firm intends to focus in the short term on integrating Magenta Patrimoine, it nonetheless remains on the lookout for other external growth opportunities. This is all the more so as the deterioration of the economic environment and the correction suffered by the financial markets since the beginning of the year could lead to lower target valuations in the coming months. In parallel, the firm does not rule out making new hires.
Legal Counsel: Christophe JOFFE, Antoine LAMY, Mathilde VASSEUR
