MetLife Investment Management (MIM), the institutional asset management business of US insurance giant MetLife, has agreed to acquire asset management firm PineBridge Investments from Pacific Century Group in a deal worth up to $1.2bn.
The deal consideration includes $800m in cash at closing, and an additional $400m contingent on future financial and earnout targets.
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However, the deal does not include PineBridge’s private equity funds group and its joint venture in China.
Upon completion, MIM’s assets under management are expected to surpass $700bn.
MetLife president and CEO Michel Khalaf said: “The acquisition of PineBridge Investments furthers our ambition to accelerate growth in asset management.
“MetLife Investment Management is on a good path to grow its business organically, supplemented by targeted, complementary inorganic growth.”
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By GlobalDataMore than half of PineBridge’s client assets are held by investors outside the US, with around one-third based in Asia.
The acquisition will also introduce new capabilities to MIM, including a collateralised loan obligation platform, a multi-asset business, and a suite of global equity strategies.
MetLife chief financial officer and MetLife Investment Management head John McCallion said: “This transaction will add substantially to MIM’s already strong franchise by expanding our public and private credit offerings, including a robust leveraged finance platform, as well as extending our global capabilities.
“We are excited about these new capabilities and the additional ways MIM will be able to partner with clients.”
PineBridge, established in 1996 as part of AIG, was later acquired by Pacific Century Group in 2010. It currently manages approximately $100bn in assets.
The deal is slated for completion in 2025, contingent on regulatory approvals.
BofA Securities and A&O Shearman are financial advisor and legal counsel, respectively, to MIM.
J.P. Morgan, Evercore, and Davis, Polk & Wardwell are advising PineBridge.
Last year, MIM acquired US-based alternative investment company Raven Capital Management.
