MetLife Expands Asset Management Reach with PineBridge Investment Acquisition
(Reuters) – MetLife, one of the largest insurance companies in the United States, announced on Monday its agreement to acquire PineBridge Investments from Hong Kong billionaire Richard Li’s Pacific Century Group (PCG) in a deal valued at up to $1.2 billion.
Strategic Growth in Asset Management
This acquisition is set to bolster MetLife’s asset management capabilities and aligns with a growing trend among insurance companies to utilize their assets for creating tailored investment platforms. The increased focus on asset management is a significant step forward in diversifying investment approaches.
Current Assets Under Management
As of September 30, MetLife Investment Management manages $609.3 billion in total assets, which include public fixed income, private capital, and real estate investments. Following the completion of the PineBridge acquisition, MetLife’s assets under management (AUM) are anticipated to surpass $700 billion.
Details of the Acquisition
The deal does not include PineBridge’s private equity funds group or its joint venture in China. The transaction comprises an $800 million upfront cash payment, along with potential additional payments of up to $400 million contingent on achieving specified financial targets by 2025, as well as a multi-year earnout structure.
PineBridge’s History and Future
PineBridge was founded in 1996 as AIG’s investment advisory and asset management division, later being acquired by Li’s Pacific Century Group in 2010 for $277 million. In February, it was reported that PCG was looking to divest its majority stake in PineBridge and had engaged JPMorgan to facilitate the sale.
Focus on Core Strengths
Post-acquisition, PCG plans to concentrate on enhancing its core competencies through its joint venture in China, known as Huatai-PineBridge, as well as a uniquely positioned private fund business. This strategic redirection emphasizes PCG’s commitment to domains where it holds distinct advantages.
Mutual Benefits Ahead
PCG highlighted that with MetLife Investment Management’s robust platform and extensive history, PineBridge is in a strong position to expand its service offerings and continue providing value to clients globally. This merger marks a forward-looking venture that aims to empower both organizations.
