Allianz Global Investors (AllianzGI) has signed a definitive agreement with Voya Financial to transfer certain investment teams and assets comprising most of its US business to Voya Investment Management (Voya IM).
Allianz will acquire a 24% stake in the enlarged asset manager as part of the deal, which is expected to close by 25 July 2022.
The addition of AllianzGI’s US-based income and growth, fundamental equities and private placement teams is expected to further enhance Voya IM’s capabilities and investment platforms.
Following completion of the deal, the transferred investment teams will continue to manage and advise US vehicles and clients they currently serve.
Voya Financial chairman and CEO Rodney Martin Jr. said: “This transaction fully aligns with our company’s focus on growth and delivering greater value for all of our stakeholders.
“In addition to the multiple financial benefits — including that the transaction is expected to be immediately accretive to adjusted operating earnings per share and improve Voya IM’s operating margin — this agreement will expand the scale and reach of Voya IM.”
As part of the deal, AllianzGI signed a long-term strategic distribution partnership to distribute Voya IM’s investment strategies outside the US and Canada.
The agreement will allow Voya IM to tap AllianzGI’s global reach and offer its US asset-based investment strategies to a larger client base.
AllianzGI has a team of over 500 relationship managers across Europe and Asia-Pacific.
AllianzGI CEO Tobias Pross said: “Today’s announcement is a significant milestone in the development of an important strategic partnership for AllianzGI, which will enable us to increase the range of US-managed investment strategies available to clients in the rest of the world.
“Voya IM complements our own strengths, footprint and culture, and we look forward to realising the potential of the partnership for clients of both firms.”
Last year, Voya Financial offloaded its financial planning channel and broker/dealer arm Voya Financial Advisors to Cetera Financial.