Marking its exit from the fund of hedge funds management sector, Allianz has sold Allianz Alternative Asset Management (AAAM) to hedge fund management company Nexar Capital Group for an undisclosed sum. AAAM, which was founded in 1981, is to be sold out of Allianz France, its majority shareholder, and Allianz Global Investors Europe.
Nexar was founded in 1999 by three former executives of Société Générale’s alternative and has as its strategic partner Aquiline Capital Partners, a New York-based private equity firm. Aquiline has positioned Nexar to act as a consolidator in the fragmented fund of hedge funds industry.
Nexar CEO Arié Assayag said: “This transaction is a significant milestone in our strategy of becoming one of the leaders in the alternative industry.”
Aquiline CEO Jeff Greenberg commented that Nexar’s acquisition of AAAM validates Aquiline’s view that the industry is ready for consolidation.