As of 2021, two strategic evolutions were made to accelerate Sienna’s development.
The first change consisted of identifying among Sienna Capital’s investments a vertical dedicated to the digital sector. This vertical accounted for 26% of Sienna’s NAV as of end June 2022.
The portfolio recorded in HY22 a value decline of EUR 653 million vs. end of 2021, representing an organic change of - 21%. This counter-performance is due primarily to investments in digital sectors which suffered significant corrections in the context of this sector’s market sell-off. Private equity and private credit strategies have, on the other hand, shown satisfactory resilience, with good proceeds and healthy valuations.
The second transformation consisted of expanding into third-party asset management. Thanks to its experience as an investor, the quality of GBL’s network and new resources thereby available, Sienna Investment Managers (“Sienna IM”) has the ambition of becoming a major name in alternative asset management in Europe, in a sector offering strong growth prospects for the years ahead.
Following the 2021 acquisition of L’Etoile Properties, now Sienna Real Estate, in March 2022, Sienna IM completed in HY22 the acquisitions of Malakoff Humanis Gestion d’Actifs (“MHGA”) and Acofi. These verticals, rebranded Sienna Gestion and Sienna Private Credit, enabled third-party assets under management to go from approximately EUR 6 billion to nearly EUR 30 billion in HY22. Over time organic growth and acquisitions will contribute to growth in total assets.
At end June 2022, Sienna’s NAV totaled EUR 2.6 billion. Separately, assets under management totaled EUR 33 billion.
In July 2022, the newly-created vertical Sienna Private Equity announced its acquisition of a minority interest in Eight Advisory, a leading independent financial and operations consulting firm specialized in transaction, restructuring, transformation and financial engineering. Sienna IM will rely on its vast European and global network to support Eight Advisory’s growth plan, which is to double in size within five years.
Sienna Private Equity aims to invest between EUR 30 million and EUR 75 million per operation, and up to EUR 150 million in co-investment opportunities. Sienna Private Equity targets mid-sized European businesses notably focusing on media, real estate, health care and business services.
Sienna IM pursued its development with the announcement of a venture capital offering, Sienna Venture Capital, in July 2022. Its ambition is to invest in companies and startups that this vertical wants see transform their sector and society.