Information on the Target

Artico Partners Ltd, based in Zurich, is a systematic asset manager that focuses on investments across both developed and emerging equity markets. Since its inception in July 2011, Artico has been building a robust investment track record, targeting companies that exhibit strong growth, profitability, balance sheet stability, and attractive valuations. Recently, Artico has enhanced its investment strategies by incorporating Environmental, Social, and Governance (ESG) criteria along with a decarbonization target aligned with the Paris Climate Agreement.

As of January 2023, all Artico funds have been classified under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR), indicating a commitment to sustainable investment objectives. The firm also proudly endorses the UN Principles for Responsible Investment (UNPRI). Under the leadership of CEO Gabriel Herrera, Artico aims to empower investors to replace a significant portion of their conventional investments with sustainable equity options that do not compromise performance or diversification.

Industry Overview in Switzerland

The asset management industry in Switzerland is renowned for its stability, regulatory framework, and innovative financial products. With a robust financial ecosystem supported by leading banks and financial institutions, the country has positioned itself as a global hub for asset management. Swiss asset managers are increasingly incorporating sustainable investment strategies into their portfolios to meet growing demand from investors seeking ethical and impactful investment options.

In recent years, Switzerland has seen a notable trend towards responsible investing and a heightened focus on ESG criteria. Investors are increasingly looking at sustainability not just as a compliance measure, but as a value driver. This shift is reflected in the Swiss financial market, where investment products that meet stringent ESG standards are becoming prevalent.

Furthermore, Swiss regulators are actively promoting transparency and accountability within the investment sector, leading to the adoption of regulations like the SFDR. This regulatory framework, aimed at increasing transparency in sustainable finance, has created an environment where asset managers can thrive while contributing to sustainable development goals.

The Rationale Behind the Deal

Serafin Asset Management's acquisition of a 51% stake in Artico Partners is a strategic move aimed at enhancing its capabilities in systematic and sustainable investment management. By acquiring a firm with a proven expertise in emerging markets and commitment to sustainability, Serafin seeks to broaden its investment offerings, catering to the increasing demand for responsible investing solutions.

This partnership will not only allow Serafin to leverage Artico's extensive research capabilities and data repository but also position the combined entity as a leading player in the fast-evolving landscape of sustainable equity investments. The envisaged complete acquisition of Artico by mid-2024 reflects Serafin’s long-term commitment to growth in this sector.

Information About the Investor

Serafin Asset Management is an investment firm focused on acquiring specialized active fund management boutiques. With a strategic vision to expand its portfolio, Serafin recently increased its stake in AMG Fondsverwaltung AG and rebranded it as Serafin Asset Management Ltd. This restructuring highlights Serafin’s commitment to growth through acquisitions that enhance its equity expertise, especially in specialized areas like sustainability and emerging markets.

By integrating Artico into its framework, Serafin believes it can provide added value to its clients through innovative investment strategies that emphasize both performance and impact. The firm’s leadership, particularly co-founder Silvio Halsig, recognizes the significant potential inherent in systematically managed investments that prioritize sustainability.

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The acquisition of Artico Partners by Serafin Asset Management presents a compelling investment opportunity. The growing importance of sustainable investing cannot be overstated, particularly as regulatory frameworks increasingly encourage transparency and accountability in the financial sector. As a systematic asset manager aligned with ESG criteria, Artico stands to enhance Serafin’s presence in this burgeoning market.

With the anticipated expansion of quantitative research resources and database synergies through this partnership, Serafin is well-positioned to capitalize on emerging trends in the investment landscape. The alignment of corporate cultures and growth ambitions among both firms paves the way for innovative product offerings that can attract new client segments.

Furthermore, the ability to provide investment solutions that meet both performance criteria and social/environmental imperatives will likely appeal to a growing base of socially conscious investors. This deal, therefore, not only strengthens Serafin’s investment portfolio but also aligns it with the shifting paradigms of asset management that prioritize sustainable and responsible investing.

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