New York Life Investments announced today it entered into a definitive agreement to acquire full ownership of Dexia Asset Management for EUR 380 million. Dexia Asset Management has approximately US$100 billion in assets under management, and is a leading international asset manager. With management centers in Brussels, Paris, Luxembourg and Sydney, the company offers global fixed income, global equities, alternatives and asset allocation products across retail and institutional channels in 11 locations covering 25 countries. The transaction, which remains subject to the approval of regulatory authorities, is expected to close on or about December 31, 2013.
The transaction further establishes New York Life Investments as a leading global asset manager and a provider of investment solutions for institutional and retail investors. The addition of Dexia Asset Management is expected to bring New York Life Investments’ total assets under management to more than $480 billion, and will likely propel its rankings into the top 25 global institutional money managers.
“We are very pleased with the growth of New York Life Investments -- and the Dexia Asset Management acquisition further demonstrates our commitment to the global asset management business which provides important earnings diversification for our company. In the five years since the financial crisis, we have been doing extraordinarily well -- more than doubling assets under management, reflecting the strong track records and first class products and service of our asset managers, as well as clients’ appreciation for the safety and soundness of New York Life,” said Ted Mathas, chairman and chief executive officer, New York Life Insurance Company. “We have superb execution of our multi-boutique model, where clients can avail themselves of a range of quality firms to fit their precise needs. Dexia Asset Management brings even more diversification to us with its excellent footprints in Europe and Australia.”
John Kim, chairman and chief executive officer, New York Life Investments, added: “Dexia Asset Management has demonstrated remarkable investment performance under challenging circumstances, reflecting its strong investment management culture and solid business fundamentals. We are looking forward to the firm joining our roster of investment boutiques.” He continued, “The acquisition of Dexia Asset Management will provide our clients with access to the company’s highly-rated funds, strong European platform, and established Australian equities business. It builds upon the strong momentum we’ve achieved in our third-party global asset management business and positions us for further growth in key markets around the world.”
Naïm Abou-Jaoudé, chief executive officer, Dexia Asset Management, said: “We are delighted to join the New York Life Investments family, part of America’s leading mutual life insurance company and one of the world’s most respected financial institutions. We look forward to building upon a complementary and shared long term vision with the benefits, support and resources of New York Life and believe our clients and staff can anticipate this partnership with confidence.”
The Dexia Asset Management acquisition continues the strong growth of New York Life Investments’ third party business. Third party assets have risen to $173 billion as of July 31 2013, from $68 billion at year end 2008, in part due to the exceptional growth of the MainStay Investments’ (“MainStay”) mutual funds business. MainStay, a New York Life company, has more than tripled its total long-term mutual fund assets under management over the past five years to over $80 billion, as of July 31, 2013, up from $26.3 billion in July 2008, solidifying the company’s position as a leader in the mutual fund industry.
