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CASE STUDY


Joint venture between Prudential Financial (USA) with Sal. Oppenheim (Germany) in Asset Management, Mutual Funds Management and Distribution


Christoph Jores acted as day to day project leader and initiated this transaction with the Hawkpoint Partners team  advising Prudential in forming a joint venture with German Wealth Manager Sal. Oppenheim. The strategic rationale was to strengthen Sal. Oppenheims asset management business and to provide Prudential with a market entry platform for retail funds in Germany. Following a market screening process, confidential discussions with a number of leading market participants with the potential of becoming partners to Prudential, it entered into formal and exclusive negotiations with Sal. Oppenheim.


As part of his leading role on the project Christoph Jores had the following responsibilities:

  • managing the project master plan
  • co-ordination of the due diligence process, assessment, risk mitigation and valuation of the target companies
  • modelling and valuing the current and future business, moderating a "joint" business Plan, bringing both parties together and working as a team already during the project phase
  • bridging the gap in pricing expectations
  • careful consideration of tactics and strategy of the deal
  • presentations to the board of Prudential
  • negotiations assistance


As part of the transaction Prudential acquired a 50 % stake in the Sal. Oppenheim wholesale funds distribution company Oppenheim Fonds Trust GmbH ("OFT") and 50 % stake in the off-shore fund management service company Oppenheim Investment Management International S.A. Luxembourg ("OIM") . OFT marketed mutual funds for Sal. Oppenheim Asset Management and OIM. The Joint Venture was then jointly controlled by both Partners with Prudential leveraging its strength in the marketing, packaging and distribution of retail USD funds, while Oppenheim providing established distribution channels in Germany. In addition Prudential agreed with Sal. Oppenheim to provide advisory and subadvisory services to Sal. Oppenheim Asset Management regarding its retail and institutional funds. The further details of the transaction include the sale of Prudentials offshore funds via the Joint Ventures distribution platform, management mandates for Oppenheim retail and institutional funds.

PRESENTATION


"Success Factors in Joint Venturing as an Alternative to M&A"

(In German, English version to follow)

JV