Alantra advises Erste Asset Management on the acquisition of ESG-focused Impact Asset Management

Sep 2024

Buy-side advisory

Vienna – Alantra has acted as financial advisor to Erste Asset Management (Erste AM), a division of listed Austrian bank Erste Group, on the acquisition of 100% of the shares of Impact Asset Management (I-AM), an ESG-focused asset manager previously owned by Cubic, with operations in Austria, Germany, and Armenia.

Erste AM coordinates and is responsible for all asset management activities within Erste Group, one of the biggest financial service providers in Central and Eastern Europe.

I-AM, founded in 2006 by Gunther Kastner with the launch of its flagship Microfinance fund, has since grown to c. €4.3bn of total assets under management, expanding its offerings to multi-asset, fixed income and private pension mandates. I-AM still has a strong focus on Microfinance, which provides lending to individuals and small business who lack access to conventional banking.

The acquisition of I-AM gives additional breadth to Erste’s asset management solutions, adding a range of ESG and impact investment funds, as institutional and retail investors look towards more sustainable and ethical ways of investing. Following the acquisition, the management team will remain in place, and I-AM will continue to operate as a subsidiary of Erste AM, ensuring business continuity.

This strategic move will not only enhance Erste AM’s market position in ESG but also allow it to explore new business opportunities. Following the takeover, the volume of ESG-managed assets by Erste AM will increase to approximately €28.7bn, representing 33.1% of Erste AM’s total assets under management (around €86.7bn as of July 31, 2024).

Heinz Bednar, CEO of Erste AM, said: “The acquisition of I-AM is a significant step in our strategic direction and allows us to considerably expand our ESG product portfolio. In particular, the microfinance funds and strong market relationships in Germany will be an excellent addition to our existing offering. This acquisition reinforces our commitment to leading in sustainable investments, enabling us to continue providing our clients with innovative and sustainable financial solutions.”

This transaction further enhances Alantra’s FIG track record across Europe and strengthens our relationship with Erste Group, which Alantra continues to support on a number of value-add engagements.