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April 5, 2022

Prudential closes $3.5bn deal to offload retirement business to Empower

Newark, New Jersey-based insurance firm Prudential Financial has concluded a $3.5bn deal to divest its full-service retirement business to Empower.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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  • Understand what is driving the PE/VC fundraising (Deal Rationale)
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by GlobalData
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The deal, announced last year in July, includes Prudential’s defined contribution, defined benefit, non-qualified as well as rollover IRA operations.

It also covers the firm’s stable value and separate account investment products and platforms.

Prudential executive vice president and head of U.S. Businesses Andy Sullivan said: “The close of this transaction marks another significant milestone in Prudential’s strategy to become a higher growth, less market sensitive, more nimble business.

“Empower, like Prudential, is driven by purpose and in them we found a partner with the scale and expertise to ensure long-term success for the retirement business.”

The deal bolsters the reach of Empower to more than 17.1 million retirement plan participants with $1.4trn in assets under administration.

It also includes over 1,800 staff who will serve financial professionals, plan sponsors and participants by offering retirement record keeping and administration services.

Empower president and CEO Edmund F. Murphy III said: “This transaction will create an even stronger service organisation at Empower, expands our product offerings and the deepens the expertise of our talent pool.” 

Separately, Prudential also completed the sale of $31bn of traditional variable annuity block to Fortitude Re.

The deal was announced in September 2021.

Under the agreement, Fortitude Re will buy Prudential Annuities Life Assurance Corporation (PALAC) and rebrand it to Fortitude Life Insurance & Annuity Company.

The deal includes nearly $31bn of in-force variable annuity account values. These cover mainly non-New York, traditional variable annuities with guaranteed living benefits issued by PALAC before 2011.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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