Société Générale Asset Management has agreed to sell its London-based asset management subsidiary, SGAM UK, which managed USD8.2bn in assets or about 2.5 per
Société Générale Asset Management has agreed to sell its London-based asset management subsidiary, SGAM UK, which managed USD8.2bn in assets or about 2.5 per cent of the group total, at the end of November to alternative asset manager GLG Partners.
This transaction will be achieved through the sale to GLG of SGAM’s shares in SGAM UK and is expected to be finalised during the first half of 2009, subject to regulatory approval.
SGAM and GLG have also agreed various business cooperation agreements as part of the transaction.
Through this acquisition, GLG, one of the biggest alternative investment managers in Europe with more than USD17bn in assets under management at the end of September, intends to increase its traditional investment offering to clients and strengthen its activity in the UK.
GLG will ensure the continuity of the funds and mandates delegated to SGAM UK.
GLG says the transaction will complement its existing long only offerings in the UK and Europe and add new capabilities directed at Japan, the Middle East and North Africa. Additionally, GLG expects to have a distribution agreement with Société Générale covering GLG’s existing alternative and long only offerings.
Noam Gottesman, chairman and co-chief executive of GLG, says: "The acquisition of SGAM UK further develops our asset management offering, adding a number of complementary long only strategies to our existing portfolio range. We continue to look for opportunities to strengthen our business and build our investment franchise."
Emmanuel Roman, co-chief executive of GLG, saysd: ‘This acquisition will allow for further developments in the product offer of SGAM UK, for the direct benefit of the existing investors in the funds, and give GLG the ability to expand its range of strategies.’
Jean-Pierre Mustier, chairman and chief executive of SGAM, adds: ‘We believe the combination of SGAM UK and GLG will be a formidable entity, and we look forward to developing a strong business relationship between GLG and Société Générale.’
SGAM was advised by Société Générale Corporate and Investment Banking on this transaction, while GLG was advised by Citi.
Société Générale Asset Management had EUR298bn of assets under management at the end of September.
A subsidiary of the Société Générale Group, SGAM has more than 3,000 employees, including more than 740 managers and analysts, based in Europe, the US and Asia, and covers all asset classes, equities, fixed income, balanced and alternative investments, the latter accounting for EUR46bn in assets.