State Street has completed the acquisition of GE Asset Management (GEAM) for $485 million, as it expands into alternatives and boosting its fixed income capabilities.
GEAM will now become part of State Street Global Advisors (SSGA), transitioning 99% of its assets under management, worth over $100 billion as of 31 March.
In addition, around 270 former GEAM employees will join the SSGA team.
“This transaction is a key step in our strategy to invest in higher growth and return businesses,” said Jay Hooley, chairman and CEO of State Street.
According to a statement from State Street, the acquisition will allow SSGA to branch into alternatives, and establish it as a leading provider of outsourced chief investment officer (OCIO) services.
“GEAM’s asset management capabilities—in areas spanning active management, alternatives and OCIO mandates—are not only complementary to our own, but will also strengthen the range of SSGA’s offerings in the marketplace,” added Ron O’Hanley, president and CEO, SSGA.
“In this lower-for-longer return environment, we think it is more important than ever for us to develop a broad investment toolkit and solutions mindset to help our clients achieve their investment goals.”
GEAM has also run money for the General Electric pension for more than 80 years, which SSGA will now oversee.