Azimut strengthens U.S. foothold with $110m acquisition of North Square Investments

How does Azimut’s acquisition of North Square Investments reshape its U.S. asset management strategy and distribution growth potential?

Azimut Group (Milan: AZM.IM) has significantly bolstered its U.S. expansion strategy with the acquisition of 100% of North Square Investments LLC, a Chicago-based multi-boutique asset management and distribution platform. Announced on July 22, 2025, the deal is valued at a minimum of $110 million, with earn-outs and a management incentive plan potentially raising the total consideration to $160 million. This acquisition cements the United States as Azimut’s second-largest market after Italy, with consolidated pro-forma Assets under Management (AuM) rising to approximately $50 billion.

The deal combines North Square Investments’ $16 billion AuM with Kennedy Capital Management’s $4.5 billion, forming a newly branded Azimut NSI platform with over $20 billion in integrated AuM. The Italian asset manager is betting heavily on a hybrid Business-to-Business-to-Consumer (B2B2C) model rather than a traditional direct-to-consumer approach, a move that its executives describe as better suited to the operational and cost dynamics of the U.S. market.

Institutional investors have interpreted the deal as a strategic inflection point for Azimut, which has historically relied on organic distribution growth in its home market. The acquisition gives it an immediate scale advantage in the U.S., a market where independent global players often struggle to compete against domestic asset managers with deep distribution networks.

Why does North Square Investments’ distribution model matter for Azimut’s U.S. growth trajectory?

Founded in 2018 through a spin-out of Oak Ridge Investments’ distribution, operations, and product platforms, North Square Investments has carved a niche as a high-touch distributor of active investment strategies. Its hybrid B2B2C model integrates sub-advisory partnerships and strategic equity stakes in boutique investment firms, allowing it to offer institutional-quality strategies to retail and institutional investors.

At the core of North Square’s competitive edge is its distribution strength, a capability that is becoming increasingly costly for mid-sized asset managers to replicate. The firm’s network spans over 500 distribution partners, 6,000 financial advisor relationships across wirehouses and Registered Investment Advisors, and 260 institutional clients, including public pension plans and insurance companies. It also maintains strong ties with 40 institutional consultants, giving it broad access to sophisticated institutional allocators.

Analysts view this as a key strategic advantage for Azimut. Building a comparable distribution network organically would require years of investment and significant operational costs. With a leadership team averaging more than 30 years of experience, including CEO Mark Goodwin and Head of Distribution Phil Callahan, North Square brings both scale and credibility to Azimut’s U.S. ambitions.

The firm has also demonstrated strong product credibility. Seven North Square mutual funds carry four- or five-star Morningstar ratings for risk-adjusted performance, while its North Square Preferred and Income Securities Fund was recognized at the LSEG Lipper Fund Awards USA 2024 for superior long-term returns. Institutional investors view this track record as critical in retaining existing clients during the integration phase.

What financial impact and synergies are expected from the Azimut–North Square Investments deal?

The acquisition is expected to be financially accretive from the outset. Azimut projects approximately 5% net profit accretion within the first 12 months, supported by North Square’s estimated $20–25 million EBITDA in 2026, excluding contributions from Kennedy Capital Management. The purchase will be financed through a mix of cash and Azimut Holding shares, with $60 million payable at closing, $50 million deferred over four years, and the remainder linked to performance-based earn-outs.

A significant synergy driver will be the cross-selling of Azimut’s global investment capabilities through North Square’s distribution network. Within the first year, North Square plans to launch seven actively managed exchange-traded funds targeting U.S. retail investors, focusing on Azimut’s global equity, fixed income, and alternative investment strategies. Analysts believe this strategy aligns with a growing trend among retail investors seeking actively managed ETFs that offer exposure to differentiated global investment themes.

Institutional investors have highlighted that Azimut’s contribution of its 51% stake in Kennedy Capital Management as part of the deal is not merely an accounting exercise. Kennedy Capital Management’s established sub-advisory relationship with North Square, particularly in its award-winning Micro Cap strategy, provides a template for deeper operational integration and product alignment.

How does this acquisition fit into Azimut’s historical U.S. strategy and broader global ambitions?

This transaction represents Azimut’s most ambitious U.S. acquisition to date and is part of a broader push to diversify its global revenue base. Historically, Azimut has expanded internationally through a mix of greenfield operations and selective acquisitions, focusing on emerging markets such as Brazil, Turkey, and the Middle East. Its U.S. presence, however, had been comparatively modest, with Kennedy Capital Management serving as its primary foothold.

By integrating North Square, Azimut transitions from being a niche foreign player to a scaled participant in the U.S. asset management ecosystem. Institutional investors view this move as a natural evolution for a group whose international growth strategy has been anchored in targeting underpenetrated distribution channels and offering specialized investment products.

Furthermore, Azimut executives have hinted that the acquisition will play a role in shaping its upcoming five-year financial targets, which are expected to be unveiled in November 2025. These targets will reportedly include updated shareholder remuneration policies that reflect a stronger earnings base anchored in U.S. growth.

What do executives say about the strategic and cultural fit between Azimut and North Square Investments?

Giorgio Medda, CEO of Azimut Group, described the transaction as a “pivotal moment” in its U.S. strategy, emphasizing that the combination of North Square’s distribution “sales engine” with Azimut’s differentiated global strategies would create a win-win dynamic. He noted that Azimut’s decision to pursue a B2B2C model rather than a conventional direct-to-consumer strategy reflects its belief that structural U.S. market growth is increasingly concentrated in intermediated distribution channels.

Mark Goodwin, co-founder and CEO of North Square Investments, said the partnership would accelerate North Square’s growth by giving it access to Azimut’s global equity, private credit, and alternative investment capabilities. He also highlighted cultural alignment, describing both firms as entrepreneurial and collaborative in their approach to product innovation and distribution. This alignment, analysts suggest, may help ease the operational challenges typically associated with cross-border acquisitions.

Takashi Moriuchi, managing director and co-founder of Estancia Capital Partners, which backed North Square’s original spin-out, described the acquisition as validation of North Square’s value proposition as a scaled U.S. distribution platform for non-U.S. asset managers.

What is the broader strategic significance of this move for Azimut and its investors?

For Azimut, the acquisition marks a decisive shift toward positioning itself as a global asset manager with dual strength in retail and institutional markets. By acquiring a well-established U.S. distribution platform rather than building one from scratch, the Italian asset manager gains immediate credibility in a market where brand trust and distribution relationships are critical barriers to entry.

Institutional sentiment toward the deal has been broadly positive. Analysts cite North Square’s proven distribution model and the rising demand for differentiated active strategies as structural tailwinds. However, they also caution that Azimut must navigate competitive U.S. market dynamics, integrate operational systems, and maintain client retention through the transition.

Longer term, the deal is seen as a strategic hedge against slowing growth in Europe, positioning Azimut to capture a larger share of global retail flows into active management products. The transaction also provides a platform for Azimut to experiment with new product structures in the U.S., including active ETFs, which are growing faster than traditional mutual funds.

If executed successfully, Azimut could emerge as a rare example of a European asset manager achieving meaningful U.S. scale, a feat that has historically eluded many foreign players.