Geneva-based REYL Group has sold the majority of its stake in RAM Active Investments to Italian banking group Mediobanca.

The strategic agreement will see Milan-based Mediobanca take a 69% interest in the Geneva asset manager, which currently manages CHF 4.9 billion (€4.22 billion) across 14 funds.

REYL will retain a 7.5% stake and will continue to be an anchor investor in RAM's products.

Founding partners Thomas de Saint-Seine, Emmanuel Hauptmann and Maxime Botti will retain significant stakes in the firm and remain committed to the company for a minimum of 10 years.

As part of the deal, Mediobanca has set out ambitious growth targets for RAM AI, which includes being involved in Mediobanca’s target of raising its current €30 billion in assets under management and assets under advisory by 15%.

The transaction, which is still subject to regulatory approval, is expected to be completed in the first half of 2018.