Tetragon in talks over possible sale of Equitix, sources say

Tetragon Financial

11/10/2024 16:07

By Amy-Jo Crowley and Andres Gonzalez
       LONDON, Oct 11 (Reuters) - Investment group Tetragon
 TFG.AS  is looking at options for British infrastructure
investor Equitix, including a possible sale, two people with
knowledge of the matter said, potentially adding to a rush of
deals by funds in alternative assets. 
    Tetragon Financial Group, based in Guernsey, invited
investment bankers in the past few weeks to pitch for an
advisory role on possible options for London-based Equitix,
whose prime assets include stakes in London's orbital motorway
the M25 and the UK's only high speed railway High Speed 1, the
people said, speaking on condition of anonymity.
    Spokespeople for Tetragon and Equitix declined to comment. 
    A deal could value Equitix at around 1.5 billion pounds,
based on its latest earnings before interest, tax, depreciation
and amortization (EBITDA) and recent valuation multiples in the
sector, the people said. 
    Infrastructure managers are attracting increased interest
from private equity firms which are seeking to become "one-stop
shops" for their limited partners, who want to meet their
investment requirements with fewer firms. 
    BlackRock agreed to buy Global Infrastructure Partners in
January for $12.5 billion to increase its presence in
alternative assets. CVC Capital Partners acquired infrastructure
manager DIF before listing on the Amsterdam stock exchange in
April this year, while General Atlantic bought infrastructure
investor Actis. 
    Equitix is expected attract attention from larger asset
managers and private equity groups in Europe and the U.S., the
people said. 
    The sources said deliberations are in the early stages and
no sale is guaranteed.
    Equitix's assets under management (AUM) total $14 billion
with investments across transport, renewable power,
environmental services, network utilities and data
infrastructure, according to its website. 
    TFG acquired Equitix in 2014 for 159.65 million pounds
($208.73 million) from Cabot Square Capital, and currently holds
75% of the business. 
    TFG's non-voting shares are listed on Euronext, and its
market capitalisation was $800 million as of Thursday's close.
It manages Equitix through TFG Asset Management, which has $40.5
billion in assets under management via different investments,
including Equitix, based on its website. 


($1 = 0.7649 pounds)

 (Reporting by Amy-Jo Crowley and Andres Gonzalez. Editing by
Anousha Sakoui and Jane Merriman)
 ((anousha.sakoui@thomsonreuters.com;))