DealZone

Asset manager deals climb

October 7, 2008

lehmanbrothers.jpegThe global financial meltdown is keeping asset management investment bankers busy as sales by distressed institutions help keep the deal flow going, according to latest data from Jefferies Putnam Lovell.

While dealmaking in general has lately been in a swoon, asset manager transactions increased 33 percent to 69 deals worldwide in the third quarter, preliminary data shows.

Total assets under management that changed hands rose to $1 trillion, more than three times the $300 billion in the third quarter of 2007, it said. Total disclosed deal value increased to $6.4 billion from $6.1 billion a year earlier.

These include deals such as the sale of Lehman Brothers fund units, including Neuberger Berman, to Bain Capital and Hellman & Friedman.

“In the short-term, we expect more banks and other cash-strapped financial institutions to retreat from owning money managers,” said Aaron Dorr, a managing director at Jefferies Putnam Lovell.

Private equity funds are expected to raise their role in the industry in general as consolidation among hedge fund companies increases, the firm said.

(Photo credit: Reuters)

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