The deal, described by the two companies as a “strategic partnership” is subject to regulatory approval and will see two executives of La Française sit on the newly appointed five member board of Alger.
Fred Alger Management launched Alger in the UK last year and has since made an increasing number of Luxembourg domciled funds available to investors.
Patrick Rivière, managing director of La Française said: “We pride ourselves in bringing institutional quality investment solutions within everyone’s reach.
“Together, with Alger, we’ll be developing new markets and building on its well-merited reputation among American retail and institutional investors as a high-standing and innovative asset manager. These past three years of intensive international development have led to this ultimate partnership, completing our now established equities expertise.”
La Française said the deal will offer a “unique opportunity to create synergies in distribution, market development and diversification”.
The firm, which has offices in Paris, Frankfurt, Hong Kong, London, Luxembourg, Madrid and Milan, said through its European network and with the support of its majority shareholder, Credit Mutuel Nord Europe, will provide distribution capabilities.
Meanwhile, Fred Alger Management – a 50 year old “growth style” manager with $22.4bn in assets under management – will “contribute its recognised expertise in growth equities”.
“Establishing this relationship with La Française is another step we are taking to build our presence outside the US,” said Dan Chung, chief executive and chief investment officer of Fred Alger Management.
“La Française is one of the leading asset managers in Europe, and I am quite pleased that Alger will be working together with La Française to provide expertise in U.S. equities as we build this partnership.”