Assicurazioni Generali and BPCE have signed a Memorandum of Understanding which would see them become the leading asset management player in Europe by revenue, with more than €1.9 trillion assets under management.
Philippe Donnet
Specifically, the joint venture would see the firms combine their respective asset management operations – Generali Investments Holdings and Natixis Investment Managers.
Subsequently, the entity would not only rank number one by revenue in Europe, but also number two by AUM in Europe and number nine by AUM globally, according to the firms.
Speaking about the potential impact of the acquisition, Philippe Donnet, Generali’s group chief executive, said: “Generali is committed to further building on the successful transformation and diversification of our group. The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the US to serve the constantly evolving needs of our customers.
“[…] Partnering with BPCE, which shares a similar culture and operational approach, ensures ideal conditions for a smooth and successful integration path for the combined business.”
Upon completion, the combined business is set to be co-controlled by the two entities – each will hold a 50% interest with a joint governance structure and ‘balanced’ representation and control.
Current chief executive of GIH, Woody Bradford, would assume the role of chief executive for the entire global entity, while Philippe Setbon, current chief executive of Natixis IM, would serve as deputy CEO.
The joint venture, once approved, would offer a range of investment capabilities across both traditional and alternative asset classes, with particular strengths in Europe and North America, as well as ‘attractive’ growth potential in Asia, according to both entities.
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“Today we are thrilled to take a new step toward creating the largest asset manager in Europe and a major global player, alongside Generali, a financial institution that shares our values,” asserted Nicolas Namias, chief executive of BPCE.
“[…] this new ambition in asset management illustrates that the dynamic of transformation and acceleration at BPCE is fully underway.”