Q1 2014 money manager M&A activity summary

Money manager mergers and acquisition activity in the first quarter was flat from the previous quarter — with total assets in transactions standing at $305.5 billion — but down more than 55% from the first quarter of 2013.

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

The 12 money management deals in the first quarter represented an increase from the previous quarter, when there were nine. In the first quarter of 2013, there were 26 transactions.

BMO Global Asset Management’s purchase of F&C Asset Management PLC, which had about $136 billion in assets under management when the deal was announced, was the largest transaction in the quarter measured by AUM.

Also of note in the quarter was Standard Life Investments Ltd.’s purchase of Phoenix Group Holdings’ Ignis Asset Management unit, which has around $98 billion in assets under management.

During the quarter, five transactions did not involve money managers. Included in those deals was the acquisition of Institutional Shareholder Services Inc. from MSCI Inc. by Vestar Capital Partners Inc. and ISS management.

On March 28, Affiliated Managers Group Inc. announced the purchase of a majority stake in River Road Asset Management LLC and a minority stake in EIG Global Energy Partners LLC. Since 2008, P&I has reported 10 acquisitions by AMG of managers that oversaw around $100 billion. The current and historic deals focused on the listed equity and alternatives arenas.

Summary: BMO Financial Group is acquiring U.K. money manager F&C Asset Management in a C$1.3 billion (US$1.2 billion) deal, doubling BMO Global Asset Management's assets under management to US$269 billion. The acquisition demonstrates BMO's “deep commitment to the asset management business, where we have steadily been building our global client base,” said William Downe, CEO at BMO Financial Group, in a conference call.

Summary: Standard Life Investments agreed to acquire Ignis Asset Management from Phoenix Group Holdings in a £390 million ($645.3 million) deal that will “deepen investment capabilities, broaden the client base and strengthen (the firm’s) strategic positioning,” according to Keith Skeoch, CEO of SLI.

Summary: Legal & General Group made its first U.S. money management acquisition, buying Global Index Advisors, confirmed Emma Douglas, head of defined contribution solutions at subsidiary Legal & General Investment Management.