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Only 37 asset management transactions were announced in the January through March period, compared with 57 deals in the first quarter of 2008, according to Jefferies Putnam Lovell. While the amount of assets under management transacted in the first quarter of 2009 increased to $552 billion from the year-earlier $362 billion, one deal – the union of Crédit Agricole and Société Générale’s asset management businesses – represented more than 60% of the total in the entire three-month period.
‘’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, New York-based Managing Director at Jefferies Putnam Lovell. ‘’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.’’
Divestitures represented 51% of the deals announced in the first quarter of 2009, up from 28% in the year-earlier period, according to Jefferies Putnam Lovell. The number of deals involving alternatives firms declined to 24% from 37%, while announced cross-border deals totaled 14%, compared with 32% in the first quarter of 2008.
Significant global asset management M&A transactions announced in the first quarter of 2009 include:
•Crédit Agricole Asset Management combining with Société Générale Asset Management (to be owned 70% by Crédit Agricole and 30% by Société Générale).
•Mitsui Life Insurance’s sale of its 25% stake in Sumitomo Mitsui Asset Management to Sumitomo Mitsui Banking (10%), Mitsui Sumitomo Insurance Co. (10%), and Sumitomo Life Insurance Co. (5%).
•Henderson Group’s acquisition of New Star Asset Management.
•Apax Partners’ sale of a 7.7% interest to GIC Special Investments and Future Fund.
About Jefferies Putnam Lovell
Jefferies Putnam Lovell, the division of Jefferies & Company, Inc. focused on the financial institutions industry, offers a wide range of corporate advisory services, including mergers and acquisitions advice and capital raising. Jefferies 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 today operates from offices in New York, San Francisco, 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.jefferies.com/jpl
About Jefferies
Jefferies, an independent, full-service global securities and investment banking firm, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm provides investors with fundamental research and trade execution in equity, equity-linked, and fixed income securities, including corporate bonds, high yield bonds, US government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans and emerging markets debt, as well as commodities and derivatives. Jefferies offers companies capital markets, merger and acquisition, restructuring and other financial advisory services. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com).
Contact:
Tom Tarrant, Jefferies & Company, Inc., 203 708 5989, ttarrant@jefferies.com
Desiree Maghoo, Jefferies International Ltd, 44 20 7029 8085, dmaghoo@jefferies.com
