It is rare for a financial company to let go of asset management when it is not to make up for a clear lack of equity capital. This is what Raymond James Financial has just done. The group, which had a management company in France, Raymond James Asset Management International (RJAMI), has left the keys to the management. RJAMI thus became Gay-Lussac Gestion, adopting the name of an illustrious grandfather of two of the company’s directors, including Emmanuel Laussinotte, the president of both the old and the new structure.
It was he who had opened Raymond James’ first European office in Europe in 1987, originally to conduct a brokerage activity on American equities. Taking advantage of its research activity for French institutional investors, the management company was created in 1995. Raymond James Financial held 57% of the company, with the remaining shares of RJAMI already in the hands of the management. The asset manager now manages one billion euros, and while the stakeholders remain discreet about the sale price, no financing other than that of the managers was necessary to hold 100% of the capital.
Raymond James Financial’s market capitalization is currently around 14 billion dollars. The company has $240 billion in assets under management in open funds and $900 billion in deposits. French management therefore remained a subsidiary activity and, what’s more, rather difficult to categorize.
“For Raymond James Financial, asset management is only fund management. However, RJAMI is present both in fund management (for about 50%), but also in mandates (35%) and retirement savings management (15%). It was therefore quite difficult for the group to classify us”, explains Emmanuel Laussinotte. However, the two entities separated in good terms, with Gay-Lussac remaining manager of Raymond James’ sub-funded mutual fund in Luxembourg. The company, which specializes in small and mid caps with low volatility, will continue to rely on Raymond James’ research.
This profitable fund will now be able to pursue its development policy independently. It aims to double its assets within three years. Like many independent managers, it is seeking to increase its positioning with wealth management advisors (WMAs) and private banks.