Two weeks after the final closing of its European equities sub-fund(1), the Emergence incubation and acceleration marketplace fund invested €50m in Gaspal Gestion (2).
Paris, 9th July 2018 – Emergence, the incubation and acceleration fund for entrepreneurial asset management companies in the Paris financial marketplace, and NewAlpha Asset Management, the SICAV’s delegated investment manager, have selected Gaspal Gestion, which represents the second investment made by the Emergence European equities sub-fund launched in June 2017 and currently closed to new investments.
Emergence contributed €50 million to Gaspal Gestion’s European equities fund, which aims to generate alpha, throughout the recommended investment term, based on the growth of dividends paid out by the companies selected for their quality.
Since its launch, Gaspal Gestion has followed a strategy based on an in-depth analysis of the ability of listed companies to pay dividends.
This approach favours the sustainability and growth of dividends rather than a high yield, meaning the companies selected have a strong business model and quality management teams. Gaspal’s portfolio management team actively manages the portfolio which is divided in three segments: 'High dividend', 'Dividend with strong growth' and 'Dividend with strong potential growth'.
"The contribution from Emergence enables us to near the €100 million threshold and to strengthen its visibility among institutional investors. Being chosen by Emergence after a very thorough and rigorous selection process conducted by NewAlpha truly recognises the solidity of our management company and the relevance of its investment strategy. This seal of quality will accelerate our growth in France and provide a powerful tool for initiating our international development," said Christian Ginolhac, Chairman of Gaspal Gestion.
"All Emergence investors appreciate the fund’s original strategy and outstanding performance. The stability and experience of the management team, which was recently strengthened, are also highly positive factors for investors," added Antoine Rolland, Chairman of NewAlpha.
Just like previous investments concluded with entrepreneurial French asset management companies, the partnership between Emergence, NewAlpha and Gaspal Gestion allows clients of the Emergence SICAV to gain exposure to the potential performance of the selected fund and to contribute to its growth through a revenue-sharing scheme.
Gaspal Gestion is the 17th asset manager to be incubated or accelerated by Emergence through its three sub-funds dedicated to equities and absolute performance. The management companies selected, which are currently partners of Emergence, have seen their AUM triple following the SICAV involvement. Today, they collectively manage €7.4 billion, 55% of which comes from international investors.
Emergence further strengthens the reputation of French entrepreneurial asset managers, and increases the appeal of the Paris financial marketplace among European competitors as a hub for asset management activities
Alain Leclair, Chairman of Emergence, concludes as follows: "We are thrilled to welcome Gaspal Gestion among our partners and eager to support its development. The major institutional investors gathered around Emergence will continue to diversify these partnerships through new innovative approaches, for example by applying Artificial Intelligence to asset management."
(1) The Emergence SICAV sub-funds are not marketable outside of France and are closed to new investments.
(2) Gaspal Gestion is authorised by the AMF under the number GP 98-31