NN Group NV updates
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Goldman Sachs Asset Administration and Germany’s DWS are making ready bids for NN Group’s funding administration arm as consolidation within the trade gathers tempo.
The Dutch insurer stated in April it was contemplating a sale of NN Funding Companions, which has €300bn in belongings underneath administration.
The deadline for remaining binding affords is Monday. GSAM, which has greater than $2tn in belongings underneath supervision, and Frankfurt-based DWS are nonetheless within the sale course of and making ready bids, stated individuals aware of the state of affairs.
The deal worth is within the area of €1.4bn, one of many individuals stated. NN Group, GSAM and DWS declined to remark.
UBS Asset Administration, Janus Henderson and US insurer Prudential Monetary are amongst these to have beforehand registered their curiosity. All three declined to remark.
Funding managers globally are embarking on mergers and acquisitions designed to defend earnings from rising prices and falling charges, whereas looking for to faucet into fast-growing markets resembling passive investing, non-public belongings and ESG, and open up new distribution channels.
“The aggressive setting for conventional lively asset managers has intensified and a smaller group of bigger gamers at the moment are dominating the institutional phase,” stated Vincent Bounie, senior managing director at Fenchurch Advisory, a specialist funding financial institution for monetary companies.
“It has develop into difficult to develop and really troublesome to have a worthwhile enterprise, particularly when you have undifferentiated plain vanilla merchandise.”
Asoka Woehrmann, chief govt of DWS, which is majority owned by Deutsche Financial institution, informed shareholders on the €820bn group’s annual assembly final month that it needed to be “an lively participant” in trade consolidation. It’s looking for additional scale to problem rival Amundi for supremacy in Europe.
In the meantime for insurance coverage corporations, a protracted interval of low rates of interest and better capital necessities underneath Solvency II guidelines is prompting teams to weigh up the place they allocate their capital, Bounie stated. “For a lot of of them, subscale asset administration divisions are not core actions and there’ll in all probability be extra divestments.”
NN Group, which relies in The Hague, got here underneath stress final yr from activist hedge fund Elliott Administration to enhance returns and streamline its operations. It stated in April it was contemplating choices together with a merger, three way partnership or a partial divestment of the division.
NN Funding Companions has about 950 workers. Of its €300bn in belongings underneath administration, two-thirds is managed on behalf of its insurance coverage dad or mum firm with the remaining third run for exterior buyers.
The division’s vary of funds covers mounted revenue, fairness, multi-asset and different funding methods. It has a robust place in ESG investing, notably in areas resembling inexperienced bonds, influence fairness and sustainable fairness.
Extra reporting by Ian Smith in London