Money manager M&A slows down in Q3

Twelve money management deals took place in the third quarter of 2022. In the third quarter of 2021, there were 32 transactions. Assets under management involved in the latest quarter’s transactions totaled $422.2 billion, down 74% from $1.65 trillion in the previous quarter.

In the third quarter, Perpetual agreed to acquire Pendal Group for $1.7 billion, with Perpetual paying A$6.54 per Pendal share. Goldman Sachs Group paid $1.8 billion in cash to acquire NN Investment Partners. With the addition of $305 billion in assets under supervision, its firmwide AUS reached a record of $2.5 trillion. CVC Capital Partners paid $346 million for a 68.35% stake in Affin Hwang Asset Management from its parent company Affin Hwang Investment Bank and senior executives, and the stake would be transferred to CVC Capital Partners Asia Fund V.

Voya Investment Management agreed to acquire Czech Asset Management with an undisclosed amount that is not material to Voya’s financial position. Pzena Investment Management Inc. is becoming a private company in a $795 million all-cash transaction through a merger with its subsidiary. The current class A shareholders will receive a 49% premium at $9.6 per share.

General Atlantic, which manages $79 billion in assets, is in talks with advisers about going public. Principal Financial Group is working with an adviser to sell its Hong Kong pension fund business, which could spark the interest of insurers and banks that are looking to expand in Asian markets. Mubadala Investment Co. has expressed interest in acquiring SoftBank Group Corp.’s Fortress Investment Group.

There also were seven deals in the quarter that did not involve money managers. Atlas Arteria agreed to pay $2 billion to buy a one-third stake in the Chicago Skyway toll road from Canada Pension Plan Investment Board and OMERS Infrastructure. Hub International acquired Direct Advisors, a registered investment adviser firm. Hub’s previous acquisitions include WealthPlan Advisors in August and 15 retirement-focused services firms last year. Lutheran Super’s $481 million in assets will be merged into Mercer Super.