activity in the asset management industry got off to a slow start
in 2009, with 37 transactions announced in the first quarter
compared with 57 in the first quarter of 2008, investment bank
Jefferies Putnam Lovell (JPL) reported.
Despite this, JPL anticipates that, with
insurers and banks selling desirable asset management operations to
raise capital, 2009 will still be a year which will see
headline-grabbing M&A transactions, though fewer in number than
in 2008.
Go deeper with GlobalData
“As they seek ways to raise capital,
distressed banks and insurers are finding their fund businesses are
among the most saleable assets, with pure-play asset managers and
private equity firms the most motivated buyers,’’ said Aaron Dorr,
JPL’s New York-based managing director.
“While we anticipate large transactions to
occur this year, M&A volume in the global asset management
sector will be down, reflecting the market and economic stresses
worldwide.”
Notably, while the number of M&A
transactions was lower in the first quarter of 2009, the assets
under management (AUM) involved increased from $362 billion in the
first quarter of 2008 to $552 billion.
The increase was, however, thanks to a single
transaction in which French bancassurers Crédit Agricole and
Société Générale agreed to merge their asset management businesses,
a deal which accounted for over 60 percent of total AUM involved in
M&A activity in the first quarter.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe new entity, in which Crédit Agricole and
Société Générale will hold stakes of 70 percent and 30 percent
respectively, will be the fourth-largest asset manager in Europe
and the ninth largest globally.
Other significant deals in the investment
management industry included the sale by Japanese mutual insurer
Mitsui Life Insurance of its 25 percent stake in Sumitomo Mitsui
Asset Management (SMAM) to an investor comprising Sumitomo Mitsui
Banking, Mitsui Sumitomo Insurance, and Sumitomo Life
Insurance.
SMAM had AUM of $111 billion at the end of
2008.
