Deals involving asset managers rose in the July to September 2008 period, with the global credit crunch as the backdrop for a jump in divestitures to almost 40% of total sales, up from 23% a year earlier, according to Jefferies Putnam Lovell, a provider of corporate advisory services to the financial institutions industry.

Sixty-nine asset manager transactions worldwide were announced in the third quarter of 2008, 33% above the total of 52 in the July to September 2007 period, according to preliminary data from the New York-based organization.

Total assets under management changing hands amounted to US$1 trillion, more than three times the US$300 billion total in the third quarter of 2007. Total disclosed deal value in the third quarter of 2008 increased to US$6.4 billion from US$6.1 billion a year earlier.

“As we anticipated, tremors transforming the global financial landscape have served as a catalyst to asset management deal flow,” said Aaron Dorr, a New York-based managing director at Jefferies Putnam Lovell, in a release.

“In the short-term, we expect more banks and other cash strapped financial institutions to retreat from owning money managers, private equity firms to step up their growing involvement in the sector, and consolidation among hedge fund companies and other alternative asset managers as firms grapple with investor redemptions and lack of liquidity. Consistent with the broader financial services industry, the asset management sector is quickly reshaping.”

Highlights from asset management M&A activity in the third quarter of 2008 include:

“ the announced sale of Lehman Brothers fund units, including Neuberger Berman, to Bain Capital and Hellman & Friedman.

> Allianz’s takeover of Cominvest as part of a swap of its Dresdner Bank unit to Commerzbank.

> Fortis’ purchase of the minority stake it didn’t already own in Artemis Asset Management.

> Lazard’s acquisition of the remaining interest in Lazard Asset Management held by the unit’s executives.

> Nippon Life’s purchase of 5% of Russell Investments.


Jefferies Putnam Lovell, the investment banking group of New York-based Jefferies & Company, Inc., is focused on the asset management and financial technology industries.

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