| Largest investment management transactions in 2005 |
| All amounts are in millions of U.S. dollars. |
|
| GAM & SBC Wealth Management | $96,700 | 100% | Julius Baer | $4,553 | UBS sells off three Swiss private banks and its successful fund-of-funds business, GAM to focus on its UBS brand. Publicly traded Baer gains scale and a poison pill through UBS minority ownership. |
| Citigroup Asset Management | $437,000 | 100% | Legg Mason | $3,700 | Legg Mason pays an additional $2 billion to swap its brokerage operation for Citi’s asset management business, doubling its assets under management and acquiring international scale. Citi eliminates a regulatory headache that delivered just 1% of the group’s net income. |
| Nextra Investment Management | $125,700 | 63% | Credit Agricole | $1,060 | Banca Intesa completes its restructuring by selling asset management subsidiary Nextra, tainted by the Parmalat scandal, to Credit Agricole, its largest shareholder. Nextra and CAAM Italia will be merged. |
| Permal Group | $19,300 | 80% | Legg Mason | $800 | Announced on the same day as its deal with Citi, Legg Mason acquires one of the top five hedge fund-of-fund managers in the world. |
| Daehan Investment & Securities | $21,300 | 100% | Hana Bank | $474 | The last of the big three Korean asset managers bankrupted in the Asian financial crisis is recapitalized by the government and sold. |
| Deutsche Asset Management (U.K. & Philadelphia) | $81,300 | 100% | Aberdeen Asset Mgmt. | $442 | Deutsche gives up trying to fix what was mostly the former Morgan Grenfell Asset Management in the U.K. and sells for just over two times revenues to Aberdeen, almost tripling its assets and giving it a strong global and U.S. bond capability. |
| Framlington Group | $7,900 | 100% | Axa Group | $339 | After a failed MBO attempt earlier in the year, Framlington’s awkward condominium ownership (HSBC 51%, Comerica 49%) is resolved by a competitive sale to AXA Investment Management. |
| Alcentra Group* | $6,200 | 80% | Bank of New York | $300 | BNY hopes to repeat the success of its Ivy acquisition by purchasing this London-based private equity-backed CLO manager, which was formed in 2002-2003 by teams from Barclays and Imperial Credit in Los Angeles. |
| First Asset Management | $23,000 | 100% | Affiliated Managers Group | $250 | AMG acquires interests in six Canadian boutique investment managers through the purchase of financial holding company First Asset. |
| Clarington Corp. | $3,800 | 100% | Industrial Alliance | $245 | Industrial Alliance, the fifth largest life and health insurer in Canada, beats out CI Fund Management to buy this Toronto-based manager of mutual funds that had gone public earlier in the year. |
| Guggenheim Alternative Asset Management | $2,800 | 72% | Bank of Ireland | $184 | Bank of Ireland adds another institutional investment boutique to its global sales platform, paying 9% of assets for its stake in this hedge fund-of-funds manager, started in 2002 by a team from Royal Bank of Canada. |
| Israeli Mutual and Provident Funds | $17,200 | 100% | Financial Buyers & Israeli Insurers | $773 | As a result of Israeli legislation requiring banks to divest asset management in exchange for the right to sell insurance, Bank Leumi, Discount Bank and Bank Hapoalim sell their mutual and provident funds. |
| *Transaction value is estimated. Source: Cambridge International Partners Inc. |
