General Electric (GE) is weighing options to sell its asset management unit GE Asset Management (GEAM) to a leading investment management firm as part of GE’s plans to cut the size of its financial businesses.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The company is looking for buyers that have considerable experience in managing retirement plan assets, scale, and broad distribution capabilities to support the growth of GEAM’s third-party client base.
Under the terms of the deal, the buyer will separately take over responsibility for the management of GEAM’s third-party client asset base, subject to client consents.
GE said that it will appoint an independent fiduciary to review the deal.
The independent fiduciary will approve the asset manager that will be engaged to manage the assets related to the company’s benefits plans (including GE pension plan) currently managed by its asset management unit.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUpon completion of the sale, GE Asset Management will retain responsibilities as plan sponsor and fiduciary for its US benefit plans. Net proceeds from the transaction will be put into the pension trust.
The company expects that the buyer will buy both GEAM’s assets and team excluding a small number of GEAM employees who will remain with GE to provide investment oversight of GE’s primary benefit plans.
The potential sale, which is subject to customary and regulatory approvals, will not change the benefits received by participants in the GE pension plan as well as GE’s requirement to meet its pension funding obligations.
GE added it has appointed Credit Suisse as its investment banker in the transaction.
GEAM chairman president and CEO Dmitri Stockton said: "By combining our business with that of another leading asset manager with scale and expanded distribution, we will strengthen our ability to build enhanced client relationships.
"In addition, this deal will create an opportunity to set a new standard for outsourced CIO management of benefit plan assets, while also providing GE with even more investment choices."
