MutualFundWire.com: Dealmakers Are Busy Kicking Tires at Asset Managers

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Tuesday, July 2, 2013

Dealmakers Are Busy Kicking Tires at Asset Managers

Asset manager M&A is on the rise. A report from a boutique M&A advisory firm Freeman& Co. shows that activity was up 32 percent from last year.

Opalesque, which covered the news, did not mention pricing. It also did not shed light on the reasons for the uptick in activity.

Freeman & Co. pegs the number of deals involving asset managers so far this year at 42 in the U.S. and 29 in Europe (an increase of 156 percent in the latter case.)

The MFWire's own dealsheet shows 10 deals in the mutual fund space so far this year.

Freeman's analysts expects to see 150 total deals this year, a 9.5 percent increase from last year, and the shop predicts that illiquid spaces such as private equity and real estate will see M&A growth.

M&A activity among broker-dealers, financial technology specialty finance and private equity in financial services, however, was less active. Eric Weber, managing director and chief operating officer of Freeman & Co. said the overall picture was bright, however:

2013 is a year of refocusing. Large asset managers are focusing on solutions and broadening capabilities. Broker-dealers are focusing on consolidation, with a new group of middle market firms taking the lead, and in specialty finance appetite for acquiring niche consumer lending companies continues.