Study: Asset Management M&A Up in 2007
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Monday, July 09, 2007

Study: Asset Management M&A Up in 2007

2007 is on track to be the year of the deal in the asset management industry. According to newly released data from Putnam Lovell NBF Securities, the total number of deals worldwide during the first half of 2007 rose almost 30 percent to 112, up from just 86 deals in the year-ago period.

The disclosed and estimated value of transactions more than doubled, to $32.3 billion, while the amount of acquired assets under management jumped by nearly one-third, to $1.26 trillion.

For the whole of last year, 191 asset management deals were recorded, with $2.6 trillion of assets changing hands. Disclosed and estimated deal value hit $44 billion.

New York-headquartered Putnam Lovell, which is itself in the process of being acquired by Jefferies & Company (see "One I-Banker Does Another, " June 21, 2007), does not see the M&A activity waning.

"We expect activity to remain brisk and pricing strong," said Ben Phillips, managing director and head of strategic analysis at Putnam Lovell NBF, pointing to new buyers from the private equity world, as well as appetite for alternative investment skills and the desire of fund firms to expand beyond their home borders, as fueling the dealmaking frenzy.

One of the largest deals in the history of the asset management industry was announced last month. On June 20, Chicago-based private equity firm Madison Dearborn Partners announced it is buying Nuveen Investments for $5.75 billion (see "Nuveen Sells," June 20, 2007).

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