Information on the Target

Seven2 has announced the signing of a definitive agreement with J.C. Flowers to acquire a majority stake in HRK LUNIS, one of Germany's leading independent wealth management platforms. The management team of HRK LUNIS, led by co-founder Andreas Brandt, will continue to oversee the company and will retain a significant stake in this transaction. This deal marks Seven2's first investment in Germany.

HRK LUNIS: Market Leader in Independent Wealth Management

Founded by CEO Andreas Brandt, alongside J.C. Flowers, HRK LUNIS aims to provide clients across Germany with comprehensive and innovative independent wealth management services that combine exceptional service with effective solutions.

The firm offers a wide array of services, including wealth management, financial advisory, asset management, private equity, and family office services through its brand Wertiq. With an integrated platform featuring a centralized investment team and unified IT infrastructure, HRK LUNIS ensures its clients receive a seamless and optimized experience.

With support from J.C. Flowers, HRK LUNIS has solidified its position as a leader in independent wealth management. Key milestones in its development include the merger with Hubert, Reuss & Kollegen in 2023 and the acquisition of ProVidens in 2024.

Today, HRK LUNIS ranks among the top five independent wealth managers in Germany, employing over 100 professionals and managing assets exceeding €6.6 billion for more than 2,200 clients across eight cities.

Industry Overview in Germany

The wealth management industry in Germany is characterized by a mix of independent firms and large financial institutions. Independent wealth management platforms like HRK LUNIS have gained traction as clients increasingly seek personalized services that prioritize their unique financial goals over traditional banking solutions.

As regulatory frameworks evolve, independent firms face the challenge of maintaining compliance while providing innovative services. However, these regulations also provide opportunities for firms that can adapt and enhance their technological capabilities.

Clients in Germany are becoming more aware of the benefits of independent wealth management, particularly in a landscape where wealth accumulation and preservation are paramount. This burgeoning awareness is driving demand for high-quality wealth management services across the country.

Moreover, the rise of alternative asset classes is reshaping the investment strategies of many wealth managers. Firms that can broaden their product offerings to include alternative investments, alongside traditional assets, are likely to see increased interest from discerning clients.

The Rationale Behind the Deal

The investment by Seven2 in HRK LUNIS is strategically aligned with both parties' growth ambitions. Seven2 aims to leverage HRK LUNIS's established market position to pursue organic growth and expand its geographical footprint, enhance its product offerings—including alternative asset classes—and optimize its digital capabilities to better serve clients.

Furthermore, HRK LUNIS intends to adopt a proactive acquisition strategy to attract future partners and enhance services available to clients. The partnership with Seven2 provides access to industry expertise and operational support necessary to fulfill these ambitious objectives.

Information About the Investor

Seven2 is an independent investment firm wholly owned by its partners, specializing in financing small and medium-sized enterprises (SMEs) and mid-cap companies in continental Europe. The firm focuses on high-potential companies in two primary sectors: technology and services.

By investing in businesses, Seven2 aims to provide entrepreneurial support, expertise, and financial resources to stimulate responsible growth. With HRK LUNIS as its first acquisition in Germany, Seven2 is further expanding its footprint in the DACH region.

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The acquisition of HRK LUNIS by Seven2 appears to be a strategically sound investment. HRK LUNIS's established market presence and robust asset management capabilities position it well for continued growth in a competitive landscape. The imminent expansion into alternative asset classes highlights its adaptability to market trends, which could lead to increased client satisfaction and retention.

Furthermore, the presence of a seasoned management team led by Andreas Brandt assures continuity and expertise, which is crucial for navigating the incremental challenges in the wealth management sector. The synergy between Seven2's resources and HRK LUNIS's proven track record could enhance operational efficiencies and accelerate growth.

Moreover, the ongoing trend towards personalized services in wealth management aligns with the strategic vision of both organizations, reinforcing the potential for success. Overall, this partnership could not only solidify HRK LUNIS's market position but also improve its competitive edge in the DACH region.

In conclusion, this acquisition represents a compelling opportunity for Seven2 to enter the German market while supporting HRK LUNIS's ambitious growth strategies. Should the collaboration be executed effectively, it has the potential to yield significant returns and secure a leading position in the wealth management industry.

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