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

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

Rating:A $122B Multinational Asset Manager Buys a Fast-Growing U.S. ETF Shop Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, February 14, 2018

A $122B Multinational Asset Manager Buys a Fast-Growing U.S. ETF Shop

News summary by MFWire's editors

A multinational asset manager with $122 billion in AUM is buying a fast-growing ETF shop in the U.S., less than two years after buying another stateside ETF shop.

Seoul-based Mirae Asset Global Investments Co., Ltd. [profile] has agreed to buy 100 percent of New York City-based Global X Management Company LLC [profile], Global X's chiefs and Mirae Asset's Taeyong Lee confirmed yesterday afternoon. The two companies are pitching the deal as "adding an anchor presence in the United States" for Mirae's global ETF business, which has about $20 billion in AUM (not including Global X). Global specializes in "thematic growth, income and international" ETFs.

CityWire, the Financial Times, and the Wall Street Journal all reported on the Mirae-Global X deal.

Pricing and terms of the deal, which is expected to close in Q3 2018, were not disclosed. RBC Capital Markets advised Global X on the deal, while Baker & McKenzie and Shearman & Sterling offered legal counsel. Dechert and Shin & Kim, provided legal counsel to Mirae Asset, which is the asset management arm of Korean financial services giant Mirae Asset Financial Group (which is also in brokerage, insurance, and investment banking).

Along with the deal, leadership at Global X will be shifting internally. Co-founder Bruno del Ama, currently chairman and CEO, will pass the CEO reigns to Luis Berruga, currently president and chief operating officer. And the official word is that Global X's day-to-day operations and brand will remain unchanged.

Mirae Asset's existing ETF businesses include BetaShares in Australia, Horizons in Canada, and Tiger ETF in Asia. Mirae Asset has also been in the U.S. ETF business for a few years. In 2012 Mirae's Horizons teamed up with Exchange Traded Concepts to launch ETFs in the U.S. (with Horizons subadvising). Then a year ago Horizon ETFs Management USA bought Stamford, Connecticut-based Recon Capital Advisors. As of December 2016 Horizons and Recon had about $150 million in combined ETF AUM in the U.S., so the Global X deal dramatically increases Mirae Asset's ETF business in the U.S.

Global X's sale to Mirae Asset comes 10 years after Global X's founding and about two years after J.P. Morgan bought a passive, minority stake in the ETF shop. The pricing and terms for that deal, and the size of J.P. Morgan's stake, were not disclosed. A spokesman for Global X confirms that J.P. Morgan stake will be divested as part of the deal.

The deal also comes after many months of strong flows for Global X, which brought in a whopping $4.323 billion in estimated net inflows last year. Global X has been consistently at or near the top of the net inflows pack among midsize fund firms (with between $1 billion and $10 billion in AUM).

Del Ama praises Mirae Asset for its "entrepreneurial and client-centric culture." Jose Gonzalez, co-founder and chief innovation officer of Global X, points favorably to both Mirae Asset's "client- and employee-centric culture" and its "global expertise and distribution power."

Taeyong Lee, global head of ETFs for Mirae Asset, describes the deal as "a landmark event" for the multinational asset manager.

"With Global X on board, we are now connecting one of the most successful US ETF firms to a prominent Asian-based global ETF manager, creating a powerful ETF platform," Lee states. 

Edited by: Neil Anderson, Managing Editor


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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
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


  1. MFDF webinar - BDC Board Service 101, December 10
  2. WE Boston - Give Back Event, December 10
  3. IMEA Distribution Council webinar - Unlocking Your Competitive Edge: Driving Results Through Net Promoter Excellence, December 10
  4. WE New York - End of Year Celebration, December 11
  5. MFDF webinar - ETF Product Trends: Board Implications, December 11
  6. Nicsa webinar - The Virtues of Corporate Culture, December 11
  7. MFDF webinar - Visually Mapping Board Composition: Skills Matrices in Fund Board Rooms, December 18
  8. IMEA webinar - Driving Equity: The FARE Journey and Its Impact on Financial Services, December 19
  9. MFDF webinar - 2024 Fair Valuation Pricing Survey: Building and Strengthening the Valuation Operating Model, January 7, 2025
  10. MFDF webinar - 15(c) White Paper Webinar Series: Part 2 – Board Processes, January 9, 2025
  11. MFDF webinar - AI and Fund Compliance, January 21, 2025
  12. MFDF In Focus - In Focus: Small Boards' Use of Skills Matrices, January 22, 2025
  13. MFDF 2025 Directors' Institute, January 27 - 29, 2025
  14. FSI OneVoice 2025, January 27 - 29, 2025
  15. 2025 ICI Innovate, February 3 - 5, 2025
  16. MFDF Director Discussion Series - Open Forum, February 10, 2025
  17. MFDF Director Discussion Series - Open Forum, February 11, 2025
  18. MFDF 2025 Fund Governance & Regulatory Insights Conference, March 6 - 7, 2025
  19. MFDF Director Discussion Series - Open Forum, April 2, 2025
  20. Envestnet Elevate 2025, April 9 - 10, 2025
  21. MFDF Director Discussion Series - Open Forum, April 15, 2025
  22. The 36th Sub-Advised Funds Forum, April 29 - 30, 2025
  23. Morningstar Investment Conference 2025, June 25 - 26, 2025
  24. MFDF Director Discussion Series - Open Forum, July 9, 2025




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use