SPAC Reportedly In Exclusive Talks To Buy Lombard International

Tom Burroughes

6 June 2021

A Special Purpose Acquisition Company , aka blank check company, is in exclusive talks to buy Lombard International Group, the specialist wealth management business currently owned by funds of Blackstone, Sky News reported yesterday. If the story is confirmed, it underscores how SPACs have mushroomed in recent months, to the extent of prompting worries about a bubble.

The news broadcaster said that Kingswood Acquisition Corp, which was listed in New York late last year, had signed a letter of intent to acquire Lombard in the last few days.

Lombard International Group is based in Luxembourg and the US, which specializes in insurance-structured policies designed to enable wealth transfer, protection and tax mitigation. The group serves more than 20 markets across Asia, Europe, Latin America and the US, providing multi-jurisdictional private-placement/unit-linked life insurance and annuities. Such policies have become an important part of wealth managers’ toolkits.

The Sky News report said a deal isn’t certain.

Family Wealth Report has contacted Lombard and Kingswood for comment and may update in due course. It hadn’t received a reply at the time of going to press today.

Blackstone has owned Lombard since 2014. The report quoted analysts saying a deal could value Lombard at around €700 million .

Last week, Lombard International Group reported that it delivered €4.3 billion of new premium income in 2020, and held €49.3 billion of assets under administration, a record high.

The rise of SPACs has prompted widespread commentary and some worries that the trend is turning into a bubble.