Buyout activity in the European asset manager industry has already surpassed €14 billion (about $15.6 billion) this year, with listed firms in particular becoming a prime target.
This year there have been 39 PE buyouts in the space worth more than €13.9 billion, according to PitchBook data. The total does not include the most recent deal: Oaktree agreed Thursday to acquire the wealth management unit of UK merchant banking group Close Brothers—Close Brothers Asset Management— for up to £200 million (about $266.3 million). This tips the 2024 total over the €14 billion mark.
Close Brothers’ share price collapsed earlier this year after it was found to be one of several lenders that could be affected by an investigation of UK regulators into the pricing of consumer car loans.
Many PE investors have seen an increase in attractive targets amid lower valuations, particularly as asset managers come under pressure from a confluence of factors including higher interest rates, incresased compeittion and a tighter regulatory environment.
Last year in particular, there was an uptick in the value and number of asset manager buyouts in the region with €8.1 billion transacted over 79 deals, up from €6 billion across 74 deals in 2022.
This year, however, has showcased fewer deals but with larger ticket sizes. Among them was last month’s £5.4 billion take-private of UK investment platform Hargreaves Lansdown led by CVC Capital Partners, Nordic Capital and Abu Dhabi Investment Authority—the largest deal in this space in Europe yet.
Featured image by Martin Barraud/Getty Images