Money manager merger and acquisition activity in the fourth quarter increased sharply from the previous quarter, with total assets in transactions standing at $409.5 billion — up more than 150% from the third quarter. Transactions were up around 34% from the fourth 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 17 money management deals in the fourth quarter represented a significant increase from the previous quarter, when there were 11. In the fourth quarter of 2013, there were nine transactions.
The quarter saw several transactions involving managers of exchange-traded funds. Janus Capital Group purchased VelocityShares. The move could help the firm launch an ETF strategy for Bill Gross to manage. New York Life Investment Management purchased IndexIQ. Victory Capital Management acquired Compass Efficient Model Portfolios, which manages several ETFs.
The standout deal in the quarter was the IPO of Old Mutual Asset Management, which had been thinking about an initial public offering for several years. The stock ended the year at $16.24, up from the $14 IPO price.
During the quarter, four financial services transactions did not involve money managers. Included in those deals was the acquisition of New York Life Retirement Plan Services by John Hancock Financial.