{"id":796746,"date":"2024-12-23T08:33:38","date_gmt":"2024-12-23T13:33:38","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/metlife-investment-management-to-acquire-pinebridge-investments\/"},"modified":"2024-12-23T08:33:38","modified_gmt":"2024-12-23T13:33:38","slug":"metlife-investment-management-to-acquire-pinebridge-investments","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/metlife-investment-management-to-acquire-pinebridge-investments\/","title":{"rendered":"MetLife Investment Management to Acquire PineBridge Investments"},"content":{"rendered":"

<\/p>\n

MetLife Investment Management to Acquire PineBridge Investments<\/b><\/p>\n

Acquisition of Leading Global Asset Manager<\/i><\/p>\n

Accelerates Growth of MetLife Investment Management<\/i><\/p>\n

Strong Strategic and Cultural Fits and Attractive Financially<\/i><\/p>\n

WHIPPANY, N.J.–(BUSINESS WIRE<\/a>)–MetLife Investment Management<\/a> (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it has reached a definitive agreement to acquire PineBridge Investments (PineBridge), a global asset manager with approximately $100 billion in assets under management,1<\/sup> from the Pacific Century Group. The transaction is comprised of $800 million in cash at closing, $200 million subject to achieving certain 2025 financial metrics and $200 million subject to a multi-year earnout. The acquisition excludes PineBridge\u2019s private equity funds group business and its joint venture in China.<\/p>\n

\nMetLife has established accelerating asset management growth as a strategic priority as part of the company\u2019s New Frontier strategy. The acquisition of PineBridge will represent the tactical advancement of MetLife\u2019s newly rolled out strategy by adding significant scale to MIM while broadening the firm\u2019s global offerings and distribution reach. Upon close, MIM\u2019s total assets under management are expected to increase to over $700 billion.<\/p>\n

\n\u201cThe acquisition of PineBridge Investments furthers our ambition to accelerate growth in asset management,\u201d said MetLife President and Chief Executive Officer Michel Khalaf. \u201cMetLife Investment Management is on a good path to grow its business organically, supplemented by targeted, complementary inorganic growth.\u201d<\/p>\n

\n\u201cThis transaction will add substantially to MIM\u2019s already strong franchise by expanding our public and private credit offerings, including a robust leveraged finance platform, as well as extending our global capabilities,\u201d said MetLife Chief Financial Officer and Head of MetLife Investment Management John McCallion. \u201cWe are excited about these new capabilities and the additional ways MIM will be able to partner with clients.\u201d<\/p>\n

\nThe acquisition will meaningfully expand MIM\u2019s global footprint with more than half of the client assets being acquired in the transaction held by investors outside of the U.S., and about one-third of the assets held in Asia.<\/p>\n

\nThe acquisition of PineBridge will also bring to MIM a collateralized loan obligation platform, a multi-asset business, a global suite of equity strategies, as well as direct lending and European real estate businesses \u2013 all of which are complementary to the firm\u2019s existing capabilities.<\/p>\n

\n\u201cThis is a pivotal moment for PineBridge as we enter an exciting new chapter. By integrating MIM\u2019s expansive platform and financial strength with our active investment expertise across public and private markets, coupled with our diversified global footprint, we are poised to enhance our capabilities and elevate the value we deliver to clients,\u201d said Greg Ehret, Chief Executive Officer, PineBridge. \u201cWe are eager to seize new opportunities and remain committed to driving long-term success for clients worldwide.\u201d<\/p>\n

\nPineBridge was founded in 1996 as the investment advisory and asset management business of AIG and was later acquired in 2010 by Pacific Century Group.<\/p>\n

\nThis transaction is targeted to close in 2025, subject to customary closing conditions, including regulatory approvals. BofA Securities is serving as financial advisor to MIM, and A&O Shearman is serving as its legal counsel. J.P. Morgan and Evercore are serving as financial advisors to PineBridge, and Davis, Polk & Wardwell is serving as its legal counsel.<\/p>\n

Transaction Highlights<\/span><\/b><\/p>\n\n\n\n\n\n
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Transaction<\/b><\/p>\n<\/td>\n

\n
    \n
  • \nAcquiring PineBridge Investments from Pacific Century Group<\/p>\n<\/li>\n
  • \n$800 million in cash at closing<\/p>\n<\/li>\n
  • \n$200 million subject to achieving certain 2025 financial metrics<\/p>\n<\/li>\n
  • \n$200 million subject to a multi-year earnout<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Strong Strategic Fit<\/b><\/p>\n<\/td>\n

\n
    \n
  • \nAdvances New Frontier strategic priority to grow asset management<\/p>\n<\/li>\n
  • \nGlobal, scaled institutional public and private credit investment manager<\/p>\n<\/li>\n
  • \nComplementary higher yield strategies<\/p>\n<\/li>\n
  • \nWell-established presence in Asia<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Attractive Financially<\/b><\/p>\n<\/td>\n

\n
    \n
  • \nExpected neutral to EPS in year 1 and accretive beyond<\/p>\n<\/li>\n
  • \nHigh teens expected internal rate of return<\/p>\n<\/li>\n
  • \nCapital light and source of steady fee income<\/p>\n<\/li>\n
  • \nPotential expense synergies<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Timing<\/b><\/p>\n<\/td>\n

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