The Tiedemann Group, Alvarium Investments Ltd. and Cartesian Growth Corp., a special purpose acquisition company (SPAC), have agreed to merge as Alvarium Tiedemann Holdings, an independent global investment firm headquartered in New York City, the companies recently announced in a joint news release.
The new entity is expected to have a post-transaction equity value of approximately $1.4 billion, and will oversee an anticipated $54 billion in assets under management (AUM) and assets under advisement (AUA) on behalf of families and institutions worldwide.
Following the completion of the transaction, which is expected to close in the first quarter of 2022, Alvarium Tiedemann’s common stock will be publicly traded on the Nasdaq under the ticker symbol GLBL.
Michael Tiedemann, CEO of the Tiedemann Group, will serve as Alvarium Tiedemann’s CEO.
“Alvarium brings a culture of entrepreneurism and a breadth of global capabilities and expertise that will complement our existing client experience,” he said in the news release. “I believe the combination of talent and geographic reach with Cartesian’s access to capital will provide the permanence needed to continue to grow and evolve a dynamic investment platform.”
Alvarium CEO Alexander de Meyer, who will chair Alvarium Tiedemann’s executive committee, said there was chemistry between the leaders of the two companies from their very first meeting.
“Upon our introduction to Tiedemann, we were immediately struck by how complementary the firms were, from investment philosophy to client service and firm culture,” he said in the news release. “This alignment made Tiedemann an optimal partner as we look to expand our global footprint, particularly in the United States.”
“We are pleased to introduce Alvarium Tiedemann to the public markets,” said Peter Yu, chairman and CEO of Cartesian, in the news release. “I see this combination as creating a powerful, unified ecosystem of capabilities that will serve a multigenerational client base while maintaining independence. This is a perfect fit strategically as well as culturally, with a robust infrastructure positioned for accelerated growth and innovation.”
The merger, which was unanimously approved by the boards of all three companies, will be funded through a combination of Cartesian’s $345 million cash in trust and approximately $165 million in capital commitments pledged by institutional investors and strategic partners of both Alvarium and the Tiedemann Group. Over 96% of equity held by active operating partners is expected to be rolled into the new company, with all proceeds from the transaction to be used for capital structure optimization.
Piper Sandler & Co., is serving as financial advisor to the Tiedemann Group, and Seward & Kissel LLP is serving as legal counsel.
The Asset & Wealth Management Investment Banking Group of Raymond James & Associates Inc., and Spencer House Partners LLP are serving as financial advisors to Alvarium, and Goodwin Procter LLP is serving as legal counsel.
Cantor Fitzgerald & Co., is serving as capital markets advisor to Cartesian Growth Corporation, while Bank of America Securities is serving as financial advisor and capital markets advisor to Cartesian. Greenberg Traurig LLP is serving as legal counsel to Cartesian.
Additional information about the proposed transaction, including a copy of the transaction agreement and investor presentation, will be provided in a current report on Form 8-K to be filed by Cartesian with the SEC and will be available at www.sec.gov.
