American Beacon Advisors is for sale, according to a source familiar with the matter. Parent AMR Corp., which owns American Airlines, retained Credit Suisse as the investment bank to handle the sale, according to the source, a competing investment banker who asked not to be identified. It will probably fetch between $350 (million) and $500 million, the source said. Any potential buyer would probably be a private equity firm, and not another asset management firm, given the current market environment, the source said. Asset managers are looking at their own valuations being hammered, he said.
Any potential buyer would probably seek a commitment from AMR that it will not pull American Airlines own retirement assets from the firm once it is sold, the source said.
American Beacon manages $65 billion in assets overall, of which $37 billion are third-party assets, according to a 10-K filed in February.
A spokesman for AMR did not confirm the manager was for sale but, in a written statement, said: AMR has been involved in an ongoing strategic value review of certain businesses under the AMR umbrella. At this time, we dont have any additional comment on the status of that review. As we have said consistently, we are always looking to determine the best structure and strategy for our businesses to help them grow and reach their full potential. In the process of this review, we are considering the best interests of all stakeholders, including customers, shareholders and employees.