GCS Capital finalizes Dexia asset management deal

The deal value was not disclosed, but previous estimates put it at EUR500 million ($654 million).

Europe will remain DAM's strategic center, but GCS will build new regional hubs in Hong Kong and Doha and extend distribution into markets such as Greater China and the Middle East. The arrangement with ICBC means DAM will become the Chinese bank's preferred asset management partner, opening up another product distribution channel.

GCS also sees potential in offering Asia-focused solutions to existing DAM's clients in Europe and Australia.

"GCS Capital is delighted to partner with DAM's experienced management team and together with our strategic partner, ICBC, broaden the franchise across emerging markets to capture capital flows," said Guocang Huan, CEO of GCS. "Asian investors are increasingly interested in genuine European expertise to identify value opportunities, while in China the financial services industry is both expanding and evolving - this presents and attractive set of circumstances where we see considerable opportunity."

Huan was an investment banker with Citigroup and HSBC before founding Primus Financial, another financial services-focused private equity firm, in 2009. It emerged last week that Primus had closed down and the fund was returning capital to investors. Huan left his position as a non-executive director at New China Life Insurance in March, citing a change in his work arrangements.

In an earlier release, Dexia described GCS as an "investor supported by institutions with strong financial resources and strategic capabilities."

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• Topics
• Financials
• Buyouts
• Europe
• Greater China
• Primus Pacific Partners
• Financial Services
• buyout
• Europe
• China