Merger and acquisition activity in the money management industry in the second quarter was up 32% over the first quarter but down 23% compared with the same quarter a year ago, according to midyear data from Freeman & Co. There were 37 asset management mergers globally in the last quarter, with $210 million in assets under management acquired, compared with $331 billion in the second quarter last year.
There were eight transactions of alternative investment firms in the second quarter five acquisitions, two distribution deals and one strategic alliance, according to Freeman data.
At the beginning of the year, Freeman analysts had predicted that there would be between 120 and 130 money manager M&A deals globally by the end of 2002. "With Julys market dislocation, we now expect to see 100 to 110 acquisition(s) this year, as large firms focus on internal issues, said analysts in Freemans second quarter M&A report. Freeman predicts that the majority of deals made by the end of the year will involve companies with less than $5 billion in assets under management.