State Street to acquire GE’s asset management arm
State Street is purchasing Connecticut-based GE Asset Management in a cash deal worth $485m.
The move will add $100bn in institutional assets to Boston-based State Street’s investment arm, State Street Global Advisors.
Among the assets State Street will take over are General Electric’s pension, covering 500,000 workers.
GE confirmed last September that it was looking to offload its investment business to focus on its industrial core.
The asset management unit looks after portfolios for more than 100 institutional clients—including retirement funds, endowments, sovereign wealth funds and insurers.
However, SSGA is interested in more than just the firm’s client book.
“GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams,” said Ron O’Hanley, president and CEO at SSGA.
“In addition, GEAM’s OCIO and Insurance platforms significantly strengthen our capabilities in these fast growing areas.”
The deal is pending regulatory approval, but is expected to finalise in the third quarter of 2016
Found this useful?
Take a complimentary trial of the FOW Marketing Intelligence Platform – the comprehensive source of news and analysis across the buy- and sell- side.
Gain access to:
- A single source of in-depth news, insight and analysis across Asset Management, Securities Finance, Custody, Fund Services and Derivatives
- Our interactive database, optimized to enable you to summarise data and build graphs outlining market activity
- Exclusive whitepapers, supplements and industry analysis curated and published by Futures & Options World
- Breaking news, daily and weekly alerts on the markets most relevant to you