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September 17, 2021

Invesco in merger discussions with State Street asset management arm

By Verdict Staff

Investment management company Invesco is reportedly pursuing talks to merge with the asset management unit of State Street.

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Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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Discussions between the companies are at an early stage and a deal may not materialise, the Wall Street Journal reported citing people with knowledge of the development.

While terms of the potential deal are not clear yet, it is expected to be one of the biggest in the recent past.

State Street’s asset-management arm is said to oversee around $4trn in assets.

State Street Global Advisors, its investing division, specialises in exchange-traded funds (ETF).

In December last year, Bloomberg reported that the firm was reviewing various strategic alternatives for its asset management arm, including a merger with UBS and Invesco.

After weighing various options, State Street executives conceded that the business needs to be bigger in order to stay competitive.

Merging with a rival was considered the best way ahead for the unit.

Invesco, with a large ETF business, manages $1.5trn in assets. It has a market value of about $11bn.

Both State Street and Invesco did not comment on the news.

Earlier this month, State Street entered into a definitive agreement to buy investor services business of Brown Brothers Harriman & Co. in a cash deal valued at $3.5bn.

Increasing consolidation in the financial space

The pace of consolidation activities has accelerated in the asset-management industry in recent times.

To offset diminishing profit margins, asset managers have been looking to bring down expenses and lower investment management fees through deals with rival firms.

In August this year, Geneva-based wealth managers Pleion and Probus filed a request for authorisation to proceed with their merger.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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