Italian insurance firm Assicurazioni Generali (Generali) and French banking group BPCE have signed a non-binding memorandum of understanding (MoU) to create a joint venture.
The two parties would combine their respective asset management operations, Generali Investments Holding (GIH) and Natixis Investment Managers (Natixis IM).
The transaction will create a combined global asset management platform, with more than €1.9 trillion of assets under management (AUM), in both Europe and North America.
The new entity would serve a diversified client base from both groups and third parties, with insurers and pension funds representing more than half of the assets.
BPCE and GIH would own 50% of the combined company with equal control rights, and its Board of Directors would comprise an equal number of representatives.
GIH CEO Woody Bradford, would be appointed as the CEO of the new entity, and Natixis IM CEO Philippe Setbon as the Deputy CEO.
Assicurazioni Generali Group CEO Philippe Donnet said: “The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the US.
“Partnering with BPCE, which shares a similar culture and operational approach, ensures ideal conditions for a smooth and successful integration path for the combined business.
“The joint venture marks a key milestone since the launch of Generali’s asset management business seven years ago and is a testament to the significant achievements over the most recent strategic cycles.”
The new asset management firm, backed by BPCE and Generali, would present a unique opportunity to build and scale a platform that is well-positioned to compete on a global level.
BPCE and Generali share a common history of investing in growing economies and contribute significantly through profitable investments by asset management affiliates.
The combined platform would serve all categories of clients, from Banque Populaire and Caisse d’Epargne’s retail customers, and wholesale intermediaries to institutional investors.
It would offer a range of investment capabilities across both traditional and alternative asset classes, to address shifting and increasingly sophisticated client needs.
Also, the combined platform would further scale its third-party business in Europe, North America and regions with attractive growth potential in Asia.
Furthermore, Cathay Life, a subsidiary of Asia-based financial institution Cathay Financial Holdings, would remain as an important strategic partner.
BPCE CEO Nicolas Namias said: “We are proud to have gathered a distinctive array of talent, with a unique balance of business between Europe and the US.
“Today we are thrilled to take a new step toward creating the largest asset manager in Europe and a major global player, alongside Generali, a financial institution that shares our values.
“Together with Philippe Donnet, Woody Bradford, Philippe Setbon and the teams at Generali Investments and Natixis IM, we would leverage our strengths in France, Italy, and the US to innovate for our clients and transform the asset management sector.”
