MetLife Acquires PineBridge Investments in Strategic Expansion
MetLife Inc. has entered into an agreement to purchase the assets of PineBridge Investments outside of China from Hong Kong billionaire Richard Li’s Pacific Century Group. This acquisition is a significant move for the U.S. insurer as it seeks to enhance its position in the asset management sector.
Financial Details of the Acquisition
MetLife Investment Management, the institutional arm of the New York-based insurer, will pay $800 million for the closely held PineBridge, which oversees approximately $100 billion in assets. The deal, announced in a statement on Monday, also includes an additional $200 million contingent on meeting specific financial targets by 2025 and another $200 million based on a multi-year earnout.
Market Response
Following the announcement, MetLife’s shares experienced a slight decline of 0.5% during Monday morning trading, bringing the company’s market valuation to about $56 billion.
Scope of the Deal
This acquisition is expected to close in 2025 and notably excludes PineBridge’s private equity funds and its joint venture with Huatai Securities Co. in China, which managed over $70 billion as of late June. Pacific Century will retain its mainland China operations, focusing on developing the Huatai-PineBridge partnership and its private fund assets to address the increasing demand for investment products in the region.
Expanding Global Reach
Upon completion of the deal, MetLife Investment Management, which specializes in fixed income, private credit, and real estate, will manage over $700 billion in assets. This acquisition is poised to enhance MetLife’s global reach, as more than half of the assets from PineBridge are held by international investors, with about one-third located in Asia.
Leadership Insights
MetLife President Michel Khalaf emphasized the strategic importance of this acquisition in advancing the company’s goal of accelerating growth within the asset management sector. He stated, “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.”
Competitive Bidding Process
In October, it was reported that MetLife was engaged in exclusive negotiations to acquire the PineBridge assets outside of China for an estimated $1 billion to $1.5 billion, successfully outbidding several competitors, including other asset managers and financial institutions.
PineBridge’s History
Pacific Century previously acquired PineBridge from American International Group Inc. for $500 million in 2010, as the insurer divested assets to repay a government bailout. Established in 1996, PineBridge serves a diverse clientele that includes pension plans, insurance companies, governmental entities, private banks, advisors, and intermediaries.
Advisory Support
Bank of America Corp. served as the financial advisor for MetLife Investment Management during this transaction, while JPMorgan Chase & Co. and Evercore Inc. acted as advisors to PineBridge.
This acquisition marks a pivotal moment for MetLife as it seeks to strengthen its asset management capabilities and broaden its global influence, particularly in the burgeoning Asian market.
