Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Janus? Calamos? Pzena? Which May Get Hitched Next? Not Rated 5.0 Email Routing List Email & Route  Print Print
Monday, August 10, 2009

Janus? Calamos? Pzena? Which May Get Hitched Next?

Reported by Meredith Mazzilli

Which fund firm could be the next to make a deal? Two Keefe, Bruyette and Woods analysts -- Robert Lee and Larry Hedden -- have made a stab at putting together a short list of possible candidates in a report published Monday morning.

The report titled "Asset Manager M&A -- Bring it On!" contains predictions for M&A activity in the asset management industry, named several firms in a theoretical "who's next" list for transactions and evaluated the validity of some recent M&A speculation.

The pair listed Morgan Stanley Asset Management, Janus, Calamos Investments, Pzena Investment Management and Waddell & Reed as "eventual transaction candidates."

Yet, just making the list does not mean that a deal is imminent. For example, while the marketplace is speculating that a deal for Janus is in the works, the two analysts predict that deal could take some time.

"We believe current JNS management is focused on renewing AUM growth and highly values its independence, nevertheless we think JNS will ultimately reach a crossroads that will require it to either make acquisitions that broaden its product line and distribution platform or look to maximize value in a sale," they wrote.

Meanwhile, Lee and Hedden noted that Franklin Resources, Legg Mason, Affiliated Managers Group and Blackstone have expressed an interested in making acquisitions.

They predicted that "mega-sized" acquisitions, however, will be rare in the future. Asset managers such as AllianceBernstein, Legg Mason and T. Rowe Price have the size to pull off large transactions, but they have what the report calls "limited to zero inclination" towards such deals.

Franklin, the report claims, is among the best positioned to pull off a large-scale purchase and may currently be willing to consider a large consolidating deal but also may be looking to fill in product holes (i.e. overseas asset management) as opposed to simply creating cost savings.

Meanwhile, Bank of New York Mellon was noted for its experience in acquisitions, global business platform and apparent predilection towards diversifying its asset management operations. Thus, the report notes that BNY may be a good candidate to do a large acquisition in the future, but in the near future would only be interested in an all-equity deal due to capital constraints.

In terms of "who's next" for transactions, the report names several that are thought to have "potential for management to consider a transaction over the longer term."

Morgan Stanley Asset Management is noted as a candidate for a Blackrock/Merrill Lynch type deal, but the report also claims that Morgan Stanley would wish to retain control in any such transaction.

Calamos is highlighted as a business that could benefit from being part of a larger distribution platform, and Pzena as one that will eventually need to expand into new strategies and asset classes. Waddell & Reed will need to deepen its fixed income capabilities in order to maintain its long-term independence, according to the analysts.

Finally, KBW floats a couple of transactions that could "make sense" on paper. With regards to the Franklin and Janus combination that has been subject to much media speculation as of late (see TheMFWire, 7/31/09 ), the paper notes that an acquisition of Janus could make strategic sense for Franklin in that it would fill the large-cap growth equity space in Franklin's product line-up. However, it also notes that Janus management is focused on remaining independent.

As for a potential deal between BNY and Federated, the paper notes that it does not see Federated as being for sale. However, it also notes that it could make some sense to BNY, at least on paper. For instance, BNY could benefit from Federated's retail platform and approach to its equities business. The paper notes that they do not think Federated is for sale, and that such a deal may not align with BNY's ambitions to expand its asset management business globally. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use