Assicurazioni Generali and BPCE have reached a preliminary agreement to form a joint venture, resulting in the creation of Europe’s second-largest asset management company, valued at nearly €10 billion. The deal, as reported by Bloomberg, will combine the investment units of both firms, creating a massive entity managing approximately $2 trillion in assets.
Key Facts
- Ownership: Generali and BPCE will each hold a 50% stake in the new company.
- Asset Management: The combined entity will rank as one of Europe’s largest asset managers, just behind Amundi SA, with a substantial portfolio of assets.
- Geographic Reach: The holding company for the joint venture will be based in Amsterdam, with operational hubs remaining in France, Italy, and the United States.
- Regional Breakdown: 61% of the total assets will be managed in Europe, while 34% will be in North America.
- Capital Investment: Generali, managing fewer assets, will contribute €15 billion in seed capital and additional funds over the next five years to help accelerate the growth of the business.
- Client Base: More than 50% of the joint venture’s assets will come from insurance and pension funds.
- Leadership: BPCE CEO Nicolas Namias will serve as chairman, while Generali CEO Philippe Donnet will take the role of vice-chairman on the board.
Industry Context
This joint venture aligns with a broader trend among European asset managers seeking to enhance their scale through acquisitions and partnerships. In the past year, BNP Paribas acquired AXA’s funds division, and Amundi has been in talks with Allianz regarding its investment arm, Allianz Global Investors. The Generali-BPCE partnership follows this strategic push to increase market presence in a competitive sector.
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Management And Strategy
Both companies will retain full control over their respective asset distribution decisions. Natixis Investment Managers, part of BPCE, owns U.S. firms such as Harris Associates and Loomis Sayles, while Generali has affiliates like Conning & Co., which recently expanded by acquiring MGG Investment Group. This venture allows both firms to operate with a degree of autonomy while benefiting from increased scale.
Conclusion
The Generali-BPCE joint venture signifies a significant reshaping of Europe’s asset management landscape. By combining their resources and capital, the two firms aim to secure a more competitive position in the global market while remaining focused on their strategic objectives and regional expertise.
