 |
||||||||||||||
|
||||||||||||||
FOR IMMEDIATE DISTRIBUTION The first half of 2007 was record-setting in the asset management industry, according to The Long and Long-Short of It, Putnam Lovell’s first half 2007 review of M&A activity in global fund management. (The full report can be requested online at www.putnamlovell.com.) Buyers spent at least $33.7 billion to purchase 114 fund management companies in the first six months of the year, acquiring almost $1.24 trillion of assets. By contrast, in the year-earlier period, the total number of deals was 87, while the disclosed and estimated value of transactions totaled $13.9 billion, and the amount of acquired assets under management grazed $1 trillion. For all of 2006, there were 191 asset management deals announced, the amount of assets changing hands totaled $2.6 trillion, and disclosed and estimated deal value reached $44 billion. According to Putnam Lovell’s semi-annual report on M&A trends, demand for hedge funds filled up the acquisition pipeline in the first half of 2007, with sales of alternative asset managers generating almost 30 percent of overall acquisition activity. Private equity firms were more active than ever before, involved in deals representing $380 billion of assets under management, a quarter of all assets acquired in the first six months. Buyers paid an average 11.9 times EBITDA (earnings before interest, tax, depreciation and amortization), an 18-month high, to acquire privately held asset management companies. Meanwhile, lofty public-market valuations encouraged alternative and traditional asset managers worldwide to explore the IPO route. "We expect asset management M&A activity to stay vigorous as demographic and globalization trends remain favorable," said Ben Phillips, managing director and head of strategic analysis at New York-based Putnam Lovell. "Moreover, a turbulent market will test alternative managers as never before. Transactions involving alternative managers that blend strategy and liquidity will result in successful deals that deserve premium pricing." About Putnam Lovell Putnam Lovell, the division of Jefferies & Company, Inc. focused on the financial services industry, offers a wide range of corporate advisory services, including mergers and acquisitions advice and capital raising. Putnam Lovell’s global client base is comprised of diversified financial services firms, institutional and mutual fund managers, alternative investment managers, banks, broker-dealers, insurers, and financial technology firms. Putnam Lovell was founded in 1987 and operates from offices in New York, San Francisco, Boston, and London. Since July 2007, Putnam Lovell has been a division of Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF). For more information please visit www.putnamlovell.com. About Jefferies Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for 45 years. Headquartered in New York, with more than 25 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities for institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefferies.com) Contact: Richard Chimberg CL-Media Relations, LLC 617-312-4281 rich@cl-media.com |
||||||||||||||
| Site Map | Customer Notices and Policies | Contact Us | ||
| © 2008 Jefferies & Company, Inc. | Member, SIPC |