HPC buys 16.1% of Equitix at £1.3bn valuation from Tetragon

Key Takeaways

Geography: United Kingdom.

Analysis

Hunter Point Capital (HPC) has agreed to acquire a 16.1% minority stake in infrastructure investor Equitix, at an implied enterprise valuation of £1.3 billion (excluding net debt), from Tetragon Financial Group and Equitix management.

The stake includes approximately 14.6% sold by TFG Asset Management, Tetragon’s alternatives platform, and 1.5% from Equitix senior management. Upon completion, HPC will join TFG and existing executives as shareholders in the firm.

Equitix, founded in 2007, has grown under Tetragon’s ownership from £1.3 billion to over £11.7 billion in AUM, investing across social and core infrastructure, energy, transport, utilities and digital sectors.

TFG Asset Management will remain the majority owner. No changes are expected to Equitix’s governance, strategy or leadership as a result of the transaction.

“We’re proud of Equitix’s growth and excited to welcome HPC as a long-term partner to support its continued success,” said TFG in a statement. The acquisition remains subject to regulatory approval and customary closing conditions.

BofA Securities advised Tetragon, with legal counsel from Dechert. HPC was represented by Latham & Watkins, and Ashurst advised Equitix management.