Another major Latin American transaction in 2012, involved Horizon Fund Management in Bogota, Colombia, which was also owned by Spanish Bank BBVA. The money manager, with $11.2 billion in assets under management, was sold to Grupo Aval, the largest financial conglomerate in Colombia.
The third largest money management transaction overall in 2012 involved Charlotte, N.C.-based Bank of America, which announced the sale of its Merrill Lynch International Wealth Management unit based in Geneva, Switzerland, for $880 million to the Zurich-based Julius Baer Group.
Bank of America also announced the sale of its Merrill Lynch private bank joint venture in Japan to its joint venture partner Mitsubishi UFJ Financial Group for $471 million on Dec. 13.
The largest announced sale of a U.S. asset manager in 2012 involved Los Angeles-based TCW Group. The $780 million sale by French bank Societe Generale to TCW employees and two funds run by private equity firm Carlyle Group was announced in August.
Before the transaction came to light, Societe Generale officials denied TCW was for sale, insisting that an initial public offering for the money manager, with $131 billion in assets under management, was a possibility some time in the future.
Time apparently ran out, according to Cambridge's M&A report at the time of the deal.
“SocGen had intended to wait for TCW's IPO to sell its stake, but with the timing pushed off due to a very messy and public divorce between TCW and bond manager Jeffrey Gundlach, a cash sale today — even at a price that required a significant write-down — appears to have been attractive to the capital-starved French bank,” Cambridge wrote in a note to investors.
Mr. Temple said TCW's announced deal price was 6.3 times its earnings before interest, taxes, depreciation and amortization, a strong contrast to the second-largest deal involving a U.S. money manager. In that deal, New York-based Epoch Holding Group, a public company, sold itself to TD Bank Group in Toronto for $670 million, a 28% premium to its public market price or 11.6 times EBITDA, he said.
Mr. Temple said what was remarkable about the strong pricing in the Epoch deal was that the money manager, with $24.2 billion in assets, was only founded in 2004.
The Carlyle Group was also the subject of M&A activity when it went public in a $671 million IPO, a move that senior management said will help it expand beyond private equity.
The fourth largest U.S. deal in 2012 was the September announcement that The Hartford was selling its 401(k) retirement business to Mass Mutual for $400 million. The Hartford has $54.9 billion under management in its retirement fund business. Mass Mutual will have approximately $120 billion in assets once it is combined with the Hartford.
One cross-border deal in the U.S. involved the strategic investment by Tokyo-based Dai-ichi Life Insurance Ltd. in Denver-based Janus Capital Group. The insurance company invested an estimated $288 million for a 15% to 20% stake in Janus. The deal also included a strategic partnership between the two firms. Dai-ichi agreed to invest $2 billion in various Janus products and distribute its funds in Japan.