Equitix welcomes Hunter Point Capital

Tetragon Financial Group Limited today announces that Hunter Point Capital or HPC, an independent investment firm providing capital solutions and strategic support to alternative asset managers, has agreed to acquire a minority stake in Equitix, a leading international investor, developer and fund manager in infrastructure.

Equitix was founded in 2007 and Tetragon acquired a controlling stake in the business in 2015. Since acquisition by Tetragon, Equitix has grown from £1.3 billion to over £11.7 billion in assets under management with a broad sector focus on social infrastructure, transport, renewable power, environmental services, network utilities and data infrastructure.

HPC has formed a strategic partnership with Equitix, acquiring a 14.6% stake in the business from TFG Asset Management, Tetragon’s diversified alternative asset management business. HPC has also acquired a 1.5% stake from Equitix management, taking HPC’s total ownership stake to 16.1% at an implied enterprise value of £1.3 billion, excluding net debt.

Stephen Prince, CEO of TFG Asset Management, said “Following ten years of strong growth, Equitix is at an inflection point. This transaction enables Tetragon to realize some of the value created in the business, while remaining invested with a trusted partner in a sector where we continue to see significant runway for innovation and growth. In HPC we found an experienced minority partner, bringing additive relationships and expertise to enhance Equitix’s continued innovation and development.”

“We are thrilled to be adding Equitix to our GP Stakes portfolio and to join Tetragon in this next phase of exciting growth for one of Europe’s leading infrastructure managers. Hugh and the Equitix team have built a market-leading firm offering a differentiated value proposition to investors. We look forward to engaging with Equitix as it further scales its platform globally and launches new products to meet the evolving needs of institutional investors, building on its established track record of value creation and impact,” said Avi Kalichstein, CEO and Co-Founder of HPC.

Hugh Crossley, CEO of Equitix commented “Equitix was founded as a responsible long-term investor in infrastructure assets, primarily focussed on the UK. It has now evolved into an infrastructure developer and fund manager with over 300 assets in 22 countries and over 400 employees. I am incredibly proud of what Equitix has achieved; we are a trusted partner managing global infrastructure assets, which we believe materially contribute to the lives of the communities they serve. I look forward to leading our team as it seeks continued growth and success in partnership with Tetragon, and now with HPC onboard.”

Equitix is part of Tetragon’s platform for alternative asset managers, TFG Asset Management, which will remain the majority owner, alongside HPC and management. There will be no changes to the governance, investment process or day-to-day management of Equitix.

HPC’s acquisition is subject to customary closing conditions, including required regulatory approvals.

BofA Securities served as financial advisor and Dechert LLP served as legal counsel to Tetragon. Latham & Watkins LLP served as legal counsel to HPC.