MetLife to acquire PineBridge in US$1.2bn deal
MetLife Investment Management (MIM) has confirmed it will acquire PineBridge Investments as it looks to accelerate further growth in asset management.
MetLife’s institutional asset management business reached a definitive agreement to acquire PineBridge from its parent company, Pacific Century Group, on 23 December 2024.
The transaction is comprised of US$800 million in cash at closing, US$200 million subject to achieving certain 2025 financial metrics and US$200 million subject to a multiyear earnout.
The acquisition does not include PineBridge’s private equity funds group business and its joint venture in China, MetLife stated.
PineBridge was founded in 1996 as the investment advisory and asset management business of AIG. It was later acquired by Pacific Century Group in 2010 and now has approximately US$100 billion in assets under management (AUM).
According to MetLife, the deal will add significant scale to the MIM business and furthers its strategic priority of accelerating asset management growth.
Upon completion this year, MIM’s total AUM is projected to rise to more than US$700 billion.
Michel Khalaf, MetLife president and chief executive, remarked: “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.”
The acquisition will also enable MIM to expand its public and private credit offerings, including a leveraged finance platform, alongside growing its global capabilities.
Moreover, the deal will bolster MIM’s global footprint with more than half of the client assets being acquired in the transaction held by investors outside of the US and approximately one-third of the assets held in Asia.
Greg Ehret, PineBridge chief executive, described it as a “pivotal moment” for the firm as it enters an “exciting new chapter”.
“By integrating MIM’s expansive platform and financial strength with our active investment expertise across public and private markets, coupled with our diversified global footprint, we are poised to enhance our capabilities and elevate the value we deliver to clients,” he said.
“We are eager to seize new opportunities and remain committed to driving long-term success for clients worldwide.”
The asset management industry continued to see strong M&A activity in 2024, with firms such as Magellan, Regal Partners and Pinnacle all active in the space.
According to EY Oceania’s wealth and asset management leader Rita Da Silva, expanded product ranges fuelled by M&A will be critical for asset managers in 2025.
AUTHOR
Jasmine Siljic
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