Financière Agache, a holding company controlled by Groupe Arnault, which carries out most of its business activities in the luxury goods sector via its indirect ownership of Christian Dior and LVMH, has joined forces with Tikehau Capital, Jean-Pierre Mustier and Diego De Giorgi to sponsor a first Special Purpose Acquisition Company (SPAC).

The SPAC will focus on the European financial services sector, global alternative asset management group Tikehau Capital said in a media release. SPACs, or 'blank-check' companies, have no commercial operations and are formed strictly to raise capital through an initial public offering (IPO) for the sole purpose of acquiring existing businesses.

Since its inception in 2004, Tikehau Capital has built a strong track-record of backing high-quality companies through equity or debt financing. "Investment vehicles like SPACs are a natural extension of Tikehau Capital’s existing investment expertise, and the Group aims to leverage its global network, origination capacity and strong equity base to sponsor value-creating projects, starting with a first SPAC that will focus on European financial services related businesses, with a primary focus on scalable platforms offering strong profit growth potential," the release said.

The new initiative will leverage the recognised industry expertise, deal sourcing and execution capabilities of its four founding sponsors. Jean-Pierre Mustier and Diego De Giorgi, two of Europe’s most experienced bankers, will be the operating partners of the company. While Financière Agache and Tikehau Capital, as strategic and financial sponsors, will bring meaningful resources and support to the company.

Targets will be aligned to four financial services areas undergoing an accelerated transformation: traditional and alternative asset management platforms, innovative financial technology firms, insurance and insurance related services and diversified financial services companies with strong customer propositions in attractive segments, according to the release.

The four sponsors plan to invest collectively a minimum of 10 per cent of the initial amount raised and to commit to enter into a substantial forward purchase agreement.

Fibre2Fashion News Desk (RKS)

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