There were 19 money management deals in the first quarter of 2023, down significantly from 35 transactions from the year-earlier quarter. Assets under management involved in the latest quarter’s transactions totaled $160 billion, only a 2% decrease from $164 billion in first quarter 2022.
In the first quarter, Alberta Investment Management Corp., and the Public Sector Pension Investment Board will jointly invest in loan opportunities sourced by PSP Investments, which shall help accelerate the growth of their respective credit portfolios. PSP Investments has C$230.5 billion ($170.5 billion) in total AUM, and its C$21.9 billion credit investment practice has a focus on non-investment-grade credit investments in North America and Europe. AIMCo’s private credit business manages C$6.1 billion in AUM. AIMCo manages more than C$160 billion.
Morgan Stanley Investment Management was approved for an equity step-up from its current 49% stake to the full control of its Chinese joint venture Morgan Stanley Huaxin Funds.
LGT, owned by Princely House of Liechtenstein, agreed to pay $169 million for the discretionary fund management business abrdn Capital, which manages £6.1 billion in assets for high-net-worth individuals and charities. First Sentier Investors, owned by Mitsubishi UFJ Trust Banking Corp. and with $146.2 billion in assets under management, will acquire a 75% stake in $9.5 billion AlbaCore Capital Group, to expand its alternative credit offerings.
Mubadala Investment Co. and Ares Management formed a joint venture with initial capital of $1 billion to capitalize on global credit secondaries. Dave Schwartz, partner and head of the credit secondaries at Ares, anticipated growth in customized liquidity solutions against the market backdrop, due to a dislocation in supply and demand.
Real estate manager Bridge Investment Group agreed to purchase Newbury Partners at $320 million, which was founded by Richard Lichter. With Newbury’s direct sourcing network and expertise in the secondary market, Bridge CEO Jonathan Slager said in a news release announcing the deal that “the acquisition is expected to be immediately accretive to Bridge’s core earnings metrics.” Newbury Partners managed $4.3 billion in fee-earning AUM as of Dec. 31.
Legal & General Capital took a significant minority stake in ImpactA Global, founded by Victoria Miles and Isabella da Costa Mendes. With a background from J.P. Morgan, ImpactA Global provides infrastructure debt financing in emerging markets, with specialties in clean energy and renewables, sustainable mobility, health, and water.
There also were eight deals in the quarter that did not involve money managers. The $284 billion sovereign wealth fund Mubadala Investment Co. and United Arab Emirates conglomerate Alpha Dhabi will collectively invest 9 billion dirham ($2.5 billion) in a global private credit joint venture. Mubadala will leverage its strategic partnership with Apollo Global Management, and the asset class is expected to diversify the portfolio and address the need for alternative forms of liquidity and credit.
TMX Group acquired a 21% stake in VettaFi Holdings for $175 million. VettaFi’s growing index and ETF data capacity is expected to accelerate TMX Group’s global offerings and present new innovative opportunities for investors of all sizes around the world.
All information is based on transactions reported by Pensions & Investments’ global reporting staff.
