French billionaire Xavier Niel joins other investors to buy GAM stake

French telecoms billionaire Xavier Niel is part of an investor group that on Thursday announced it has bought a 7.5 per cent stake in Swiss asset manager GAM.

The group consists of NewGAMe, a company controlled by Rock Investment; a subsidiary of NJJ Holding, Niel’s personal holding company; and Bruellan, a wealth management group. It said it holds around 12mn shares in GAM.

The investor group said in a statement that it has invested in GAM because it sees “an opportunity to restore [its] reputation as a best-in-class asset management firm”.

GAM’s “shares are undervalued and offer significant upside to shareholders if the company can complete a successful turnround”, Thursday’s statement said.

The Swiss asset manager is seeking a buyer after its share price has plunged more than 95 per cent since 2018. It has held talks with Switzerland’s Zürcher Kantonalbank and UK boutique fund manager Liontrust.

Niel is one of the richest men in France, best known for launching low-cost telecoms operator Free Mobile and for his investment in technology and real estate.