TA Associates-backed DNCA Finance auction in first round, CEO Franc says

  • Credit Suisse and Fenchurch Advisory Partners are running the sale
  • TA and Banco Leonardo hold about 60% of DNCA
  • TA’s stake would be worth about 500 mln euros ($623.5 mln)

Credit Suisse and Fenchurch Advisory Partners are running a process for the French asset manager, Franc said. The auction is for TA and Banco Leonardo’s holdings, which account for about 60 percent of DNCA, Franc said. A small part of management’s stake could also be included in the sale, he said.

Boston-based TA invested in DNCA in July 2011. TA owns half of DNCA while company management owns more than 40 percent. Banco Leonardo has 10 percent. Earlier this week, peHUB reported TA was looking to sell DNCA.

A sale of all of DNCA would likely fetch 1 billion euros ($1.2 billion) so TA’s holding would be worth about 500 million Euros ($623.5 million), Franc said. The DNCA auction started a few weeks ago and is in the first round, he said.

While DNCA has been happy with TA, the U.S. private equity firm has been more of a “sleeping shareholder,” Franc said. DNCA is seeking a strategic buyer, a firm with distribution capacity in countries DNCA isn’t in, Franc said. “If we can find a partnership with someone with distribution in Asia, or Latin America or the U.S. that would be great, he said. “A global player.”

DNCA also doesn’t have an office in Spain or Stockholm, he said.

Credit Suisse declined comment. Officials for TA, Banco Leonardo and Fenchurch couldn’t immediately be reached for comment.