Northill Capital has acquired a 60% stake in Copenhagen-based Capital Four Holding A/S, as part of its long term strategy to invest in high quality, single-purpose asset management businesses.
The stake comes from a recently retired partner of the firm, with the balance of the equity also being acquired from existing partners Sandro Näf, Torben Skødeberg and Henrik Østergaard, who all hold Citywire AA-ratings.
Additional employees of Capital Four will retain indirect equity exposure through the firm’s warrant programme. The current partners will continue with the firm and the Capital Four will remain in Copenhagen.
Existing Capital Four equity owners will hold their remaining equity for a minimum of five years and each will reinvest a minimum of half of their after-tax proceeds into Capital Four’s investment strategies.
Capital Four was founded in 2007 and is one of the largest independent high yield investment managers in Europe, with €6 billion assets under management. It manages European high yield strategies including high yield bond, leverages loans and credit long/short primarily for institutional investors. It follows a bottom-up credit selection and analysis process.
Commenting on the purchase Jon Little, a partner at Northill Capital said: ‘The business has built a very talented, collegial team we like and respect, with an investment-led, ‘no stars’ culture, and is committed to the continuous progression of its capabilities.’
‘Capital Four has a diversified client base and excellent business momentum with substantial international potential. As an owner alongside management, our focus is on being a long-term supportive partner, working jointly with Capital Four to ensure the business continues to grow and develop whilst maintaining its strong investment performance.’