EFG International Acquires Bermudian Fund Of Hedge Funds Firm

by Carla Johnson, Investors Offshore.com

15 February 2006

As part of its strategy to respond to growing demand for alternative investments, EFG International, the Swiss-based global private banking group, has announced that it has reached an agreement to acquire the total share capital of Capital Management Advisors (CMA), a fund of hedge funds manager, from its founders.

While EFG did not disclose the price that it has paid for CMA, the firm has stated that approximately 50% of the transaction consideration is to be paid initially, with the remaining amount to be paid over a five year earn-out period.

EFG, which has about CHF5 billion under management, is expecting the CMA acquisition to add about CHF20 million (US$15.25 million) to its net profits in 2006.

CMA, founded in Bermuda by Sabby Mionis and Angelos Metaxa in 1997, has approximately CHF2.1 billion in assets under management and, according to EFG, has had a "consistent" record of double digit growth in terms of assets and trading profits. CMA currently tracks the performance of more than 2,500 US, European and other international hedge funds.

Lawrence Howell, Chief Executive Officer of EFG International explained that the acquisition of CMA is part of the group's strategy to cater for a growing demand for alternative investments.

"The acquisition of CMA enhances EFG International's capabilities in this area further, offering management services in the fund of hedge funds area and hedge fund research capability. This is a highly strategic and synergistic acquisition," he noted.

Meanwhile, Sabby Mionis, Chief Executive Officer of CMA stated his belief that the partnership with EFG marks an important milestone in the company's quest to become one of the largest and best performing fund of hedge funds companies globally.

"Our strong research capabilities and track record combined with EFG International's entrepreneurial culture and expert structuring and distribution capabilities will enable CMA to offer a better product to a broader client base," he predicted.

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