Money manager M&A down 21% in quarter

Money manager M&A deals in the second quarter dropped 21% while assets involved fell 67% from the first quarter.

Twenty-six money management deals took place during the most recent quarter, down from 33 in the previous quarter. In the second quarter of 2017, there were 20 transactions. Total assets involved in the transactions were $47.6 billion, down from $1.4 trillion from the previous quarter.

The blockbuster deal in the quarter was the announced spinoff of CFS Group from Commonwealth Bank of Australia. Colonial First State Global Asset Management has A$207 billion ($154 billion) in assets under management. Commonwealth Bank of Australia said First State will be spun out as part of a wider group of businesses, CFS Group, that will also include Commonwealth Bank of Australia's superannuation, investment and retirement platform, which has more than A$135 billion in funds under administration.

BlackRock (BLK) and Dyal Capital Partners both made two acquisitions in the quarter. Bank of Nova Scotia completed the acquisition of money manager Jarislowsky Fraser for about C$950 million ($740 million) and will now have C$166 billion in assets under management. Hellman & Friedman agreed to acquire managed account provider Financial Engines in a deal worth $2.8 billion.

During the first quarter, there were 12 deals that were retirement related but did not involve money managers. Ascensus completed three of those deals. It acquired QBI LLC, Swerdlin & Co., SES Advisors and Benefit Planning Consultants. Baidu's financial group will be renamed Du Xiaoman Financial and raise roughly $1.9 billion from investors including TPG and Carlyle Group. Intercontinental Exchange agreed to buy the Chicago Stock Exchange.

All information is based on transactions reported by Pensions & Investments' global reporting staff.

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