MetLife Expands Global Reach with $800 Million PineBridge Acquisition
In a strategic move to bolster its asset management capabilities, MetLife Inc. has agreed to acquire PineBridge Investments’ assets outside of China from Hong Kong billionaire Richard Li’s Pacific Century Group. This significant deal marks a major milestone in MetLife’s growth strategy, solidifying its position as a leading institutional asset manager.
A Key Player in the Asset Management Landscape
PineBridge, founded in 1996, boasts an impressive portfolio of over $100 billion in assets under management. Its client base includes a diverse range of pension plans, insurance companies, official institutions, private banks, advisers, and intermediaries. With this acquisition, MetLife Investment Management will significantly expand its global footprint, with more than half of the acquired client assets originating from outside the US and approximately one-third from Asia.
Deal Structure and Financial Projections
The acquisition is valued at $800 million, with an additional $200 million contingent on meeting specific financial targets in 2025. A further $200 million will be paid subject to a multiyear earnout. While MetLife shares dipped 0.5% in Monday morning trading, the company’s market value remains strong at approximately $56 billion.
Pacific Century Retains China Business
As part of the deal, Pacific Century will retain PineBridge’s private equity funds and its China joint venture with Huatai Securities Co., which manages over $70 billion in assets. The holding company plans to focus on developing Huatai-PineBridge and its private funds assets, catering to China’s growing demand for investment products.
MetLife’s Ambitious Growth Plans
The acquisition aligns with MetLife President Michel Khalaf’s vision to accelerate growth in asset management. With this deal, MetLife Investment Management will surpass $700 billion in assets under management, further solidifying its position as a leading player in the industry. Khalaf emphasized that the company is committed to organic growth, supplemented by targeted, complementary acquisitions.
Advisers and Transaction Details
Bank of America Corp. acted as financial adviser to MetLife Investment Management, while JPMorgan Chase & Co. and Evercore Inc. advised PineBridge on the transaction. The deal is expected to close in 2025, subject to regulatory approvals.
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