Allianz has announced plans to sell AGI US, the US business of its asset management arm Allianz Global Investors (AllianzGI), to Voya Financial.
The proposed deal covers AGI US’ equity and fixed income investment teams, select client service and sales professionals along with nearly $120bn of assets under management (AUM).
The AUM is comprised of income and growth, fundamental equity, and private placement assets.
The announcement comes after AGI US agreed to plead guilty to fraud over the collapse of its Structured Alpha fund.
The German insurer has agreed to pay around $6bn to resolve the US government investigation of the collapsed fund.
Allianz said it has already made provisions for such expenses in 2021 and the first quarter of 2022.
As a result of the guilty plea, “AGI US is automatically and immediately disqualified from providing advisory services to the US-registered investment funds for the next ten years, and will exit the business of conducting these fund services”, SEC said in a statement.
As per the terms of the memorandum of understanding (MoU), AllianzGI would receive up to 24% stake in Voya IM, the asset management arm of Voya.
The agreement also includes a long-term distribution partnership, which will see AllianzGI distribute Voya IM’s investment strategies overseas.
The firms plan to sign definitive agreements in the coming weeks.
Voya noted that the planned acquisition will increase Voya IM’s AUM to approximately $370bn and will require no external financing or use of its excess capital.