Investment firms Tiedemann Group and Alvarium Investments have agreed to merge and go public through Cartesian Growth Corporation, a Nasdaq-listed special purpose acquisition company (SPAC), in a deal valued at US$1.4 billion.

The combined company, Alvarium Tiedemann Holdings, will oversee US$54 billion in assets under management (AUM) and assets under advisement (AUA), with offices across four continents, 11 countries and 25 cities.

Following completion of the transaction, expected in the first quarter of 2022, Alvarium Tiedemann’s common stock will become publicly traded on Nasdaq under the ticker symbol “GLBL”. It will be headquartered in New York.

Commenting on the latest deal, Tiedemann Group chief executive officer Michael Tiedemann says: “We are thrilled to partner with Alvarium to establish a truly unique, global investment firm in Alvarium Tiedemann. Alvarium brings a culture of entrepreneurism and a breadth of global capabilities and expertise that will complement our existing client experience. 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. We have a unified vision that is committed to diversity and inclusion, serving our clients and continuing on our path to becoming a differentiated leader in investment strategies and services.”

Perfect fit

Alvarium CEO Alexander de Meyer adds: “Upon our introduction to Tiedemann, we were immediately struck by how complementary the firms were, from investment philosophy to client service and firm culture. This alignment made Tiedemann an optimal partner as we look to expand our global footprint particularly in the United States. I am confident this combination will accelerate the growth of our combined firms, improving our ability to help our clients access innovative investment solutions and ensuring long-term opportunities for our employees.”

The deal is expected to form an independent global wealth manager focused on the high-net-worth segment with a leadership position in impact or values-aligned investing.

“I see this combination as creating a powerful, unified ecosystem of capabilities that will serve a multi-generational 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,” says Cartesian chairman and CEO Peter Yu.

The transaction will be funded through a combination of Cartesian’s cash in trust and approximately US$165 million fully committed purchase of shares of common stock of Cartesian pursuant to a private investment in public equity (PIPE). The PIPE capital commitments have been obtained from institutional investors and strategic partners of both Alvarium and the Tiedemann Group. Cartesian has US$345 million of cash in its trust account.

Over 96% of equity held by active operating partners is expected to be rolled into the combined company, with all proceeds from the transaction being used for capital structure optimization. All references to available cash from the trust account and retained transaction proceeds are subject to any redemptions by the public shareholders of Cartesian and payment of transaction expenses.

The respective boards of the Tiedemann Group, Alvarium and Cartesian have unanimously approved the proposed business combination.

Leadership team

Michael Tiedemann will serve as Alvarium Tiedemann’s CEO, while Alexander de Meyer will chair the firm’s executive committee.

Piper Sandler & Co. is serving as financial adviser and Seward & Kissel LLP is serving as legal counsel to the Tiedemann Group.

The Asset & Wealth Management Investment Banking Group of Raymond James & Associates Inc. and Spencer House Partners LLP are serving as financial advisers and Goodwin Procter LLP is serving as legal counsel to Alvarium.

Cantor Fitzgerald & Co. is serving as capital markets adviser to Cartesian Growth Corporation. Additionally, BofA Securities is serving as financial adviser and capital markets adviser to Cartesian. Greenberg Traurig LLP is serving as legal counsel to Cartesian.