MetLife Boosts Asset Management Muscle with $1.2 Billion PineBridge Deal

MetLife Investment Management Expands Global Reach with PineBridge Acquisition

In a significant move to accelerate growth in asset management, MetLife Investment Management (MIM), the institutional asset management business of US insurance giant MetLife, has agreed to acquire PineBridge Investments from Pacific Century Group in a deal worth up to $1.2 billion.

Deal Structure and Consideration

The acquisition includes an upfront payment of $800 million in cash at closing, with an additional $400 million contingent on future financial and earnout targets. Notably, the deal excludes PineBridge’s private equity funds group and its joint venture in China.

Assets Under Management to Surpass $700 Billion

Upon completion, MIM’s assets under management are expected to surpass $700 billion, solidifying its position as a leading institutional asset manager. MetLife president and CEO Michel Khalaf emphasized that the acquisition aligns with the company’s ambition to accelerate growth in asset management through targeted, complementary inorganic growth.

Global Expansion and New Capabilities

PineBridge’s client assets, with over half held by investors outside the US and around one-third based in Asia, will introduce new capabilities to MIM, including a collateralized 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 highlighted the transaction’s potential to expand MIM’s public and private credit offerings, including a robust leveraged finance platform, and extend its global capabilities.

PineBridge’s History and Current Portfolio

Founded in 1996 as part of AIG, PineBridge was later acquired by Pacific Century Group in 2010. Today, it manages approximately $100 billion in assets. The deal is slated for completion in 2025, contingent on regulatory approvals.

Advisors and Counsel

BofA Securities and A&O Shearman served as financial advisor and legal counsel, respectively, to MIM. J.P. Morgan, Evercore, and Davis, Polk & Wardwell advised PineBridge. This acquisition follows MIM’s purchase of US-based alternative investment company Raven Capital Management last year.

Author

Leave a Reply

Your email address will not be published. Required fields are marked *