Asset Management M&A Insights: The way forward

February 2012
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Asset Management M&A Insights: The way forward

At a glance

2011 was the worst year in global asset management mergers and acquisitions in five years. European bank divestitures, continuing improvement in valuations and strong buyer interest should improve in 2012. Competition for growth is increasing and continuing uncertainty could make managing performance difficult.

Asset managers around the world are facing a wide range of challenges including continuing volatile markets resulting in poor performance for many funds, uncertainty caused by evolving new regulations that are being implemented in the wake of the financial crisis as well as investors’ continued demands for liquidity, transparency and performance. Many potential buyers and sellers chose to focus on managing their performance, investor retention and improving their cost management instead of doing deals in 2011.

While 2011 was the worst year in global asset management M&A in the last five years, both in terms of deal volumes and values, we believe that European bank divestitures, continuing improvement in valuations and strong interest from buyers will make 2012 a better year. The competition for growth is heating up and continuing uncertainty may make managing performance difficult. There are a number of highly publicized rumored deals coming out of Europe that could result in significant improvement in deal values in 2012, if they are successfully closed.

This paper provides perspectives on the recent trends and outlook relating to asset management mergers and acquisitions activity in the US and major global markets.