Money manager M&A assets drop 80% in second quarter

Money manager merger and acquisition activity in the second quarter of 2013 fell significantly from the previous quarter, with assets involved in transactions totaling $98.8 billion — down more than 80% from the first-quarter total. However, the number still represents a more than 15% increase from the second quarter of 2012.

The 10 deals that occurred in the second quarter also represented a significant decrease from the previous quarter — there were 25 money management deals in the first quarter of 2013 — and were flat from the 10 transactions in the year-earlier quarter.

All information in this analysis of money manager M&A activity is based on transactions reported in Pensions & Investments.

Real estate deals were responsible for three M&A transactions in the quarter, involving $20.6 billion in assets. There also were three real estate joint ventures in the quarter. The largest real estate-related acquisition was by BlackRock Inc., which purchased MGPA Ltd.

Carlyle Group LP's purchase of a remaining 40% interest of AlpInvest Partners BV was the largest transaction in the quarter as measured by assets under management.

Also of note in the quarter was the initial public offering of ING U.S. The company's stock was priced at $19.50 per share, below the expected range of $21 to $24. The stock rose 7% in the first day of trading to close at $20.84. It finished the quarter up 38.8% at $27.06.

During the quarter, there were two transactions that did not involve money managers but are related to institutional investing. Investment consultant Marquette Associates acquired Archstone Portfolio Solutions LLC, and Market Strategies International acquired Cogent Research, a marketing research firm focusing on financial services.