Invesco, a US investment management company, has completed acquisition of global asset manager OppenheimerFunds from Massachusetts Mutual Life Insurance (MassMutual).
The acquisition of OppenheimerFunds has expanded the total assets under management (AUM) of Invesco to $1.2trillion (£0.94trillion).
OppenheimerFunds was acquired by MassMutual for $150m (£117.77m) in 1990. Since then, the asset manager is said to have grown its AUM from $14bn (£10.99bn) and around 1.2 million shareholder accounts to more than $246bn (£193.13bn) and 13 million plus shareholder accounts, as of 30 September 2018.
As per the deal announced in October 2018, MassMutual has been issued around 81.9 million shares of common stock and about $4bn (£3.14bn) in perpetual, non-cumulative preferred shares in Invesco. This represents a stake of nearly 15.7% in the enlarged US investment management company following its acquisition of OppenheimerFunds.
MassMutual is now the largest shareholder in the investment management company.
MassMutual chairman, president and CEO Roger Crandall said: “The completion of this transaction underscores our steadfast commitment to the global asset management business and enables us to capitalize on the scale of a larger, more diversified combined entity – one that is well-positioned for success in this dynamic environment.
“Importantly, this strategic combination is a reminder of how MassMutual’s distinct mix of high-performing businesses consistently helps the company deliver outstanding results across various market cycles, grow faster than our competitors and provide excellent value to our policyowners and customers.”
Invesco’s and OppenheimerFunds’ highly complementary investment and distribution capabilities are expected to bolster the ability of the combined firm to offer more relevant investment outcomes to an expanded number of institutional and retail clients in the US and across the world.
Clients of both companies are expected to benefit from the resulting combination. The combined firm is said to incorporate OppenheimerFunds’ high-performing investment capabilities and its US third-party distribution platform with the strong and diversified product range, global footprint and solutions-driven client outreach of Invesco.
Invesco president and CEO Martin Flanagan said: “Clients face increasingly complex issues and are looking to work with fewer providers that can offer a comprehensive array of products and services. As the asset management industry sees further consolidation, we believe that firms with a wide range of capabilities, optimal value-added services and meaningful scale will be best positioned to meet client needs and succeed over the long term.
“We will leverage the combined firm’s highly talented team of professionals, expanded set of capabilities and deep global presence to continue providing tailored solutions that help our clients around the world achieve their investment objectives.”