MetLife Investment Management to Acquire PineBridge Investments
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc., announced that it has reached a definitive agreement to acquire PineBridge Investments (PineBridge), a global asset manager with approximately $100 billion in assets under management,1 from the Pacific Century Group. The transaction is comprised of $800 million in cash at closing, $200 million subject to achieving certain 2025 financial metrics and $200 million subject to a multi-year earnout. The acquisition excludes PineBridge’s private equity funds group business and its joint venture in China.
MetLife has established accelerating asset management growth as a strategic priority as part of the company’s New Frontier strategy. The acquisition of PineBridge will represent the tactical advancement of MetLife’s newly rolled out strategy by adding significant scale to MIM while broadening the firm’s global offerings and distribution reach. Upon close, MIM’s total assets under management are expected to increase to over $700 billion.
“The acquisition of PineBridge Investments furthers our ambition to accelerate growth in asset management,” said MetLife President and Chief Executive Officer Michel Khalaf. “MetLife Investment Management is on a good path to grow its business organically, supplemented by targeted, complementary inorganic growth.”
“This transaction will add substantially to MIM’s already strong franchise by expanding our public and private credit offerings, including a robust leveraged finance platform, as well as extending our global capabilities,” said MetLife Chief Financial Officer and Head of MetLife Investment Management John McCallion. “We are excited about these new capabilities and the additional ways MIM will be able to partner with clients.”
The acquisition will meaningfully expand MIM’s global footprint with more than half of the client assets being acquired in the transaction held by investors outside of the U.S., and about one-third of the assets held in Asia.
The acquisition of PineBridge will also bring to MIM a collateralized loan obligation platform, a multi-asset business, a global suite of equity strategies, as well as direct lending and European real estate businesses – all of which are complementary to the firm’s existing capabilities.
“This is a pivotal moment for PineBridge as we enter an exciting new chapter. By integrating MIM’s expansive platform and financial strength with our active investment expertise across public and private markets, coupled with our diversified global footprint, we are poised to enhance our capabilities and elevate the value we deliver to clients,” said Greg Ehret, Chief Executive Officer, PineBridge. “We are eager to seize new opportunities and remain committed to driving long-term success for clients worldwide.”
PineBridge was founded in 1996 as the investment advisory and asset management business of AIG and was later acquired in 2010 by Pacific Century Group.
This transaction is targeted to close in 2025, subject to customary closing conditions, including regulatory approvals. BofA Securities is serving as financial advisor to MIM, and A&O Shearman is serving as its legal counsel. J.P. Morgan and Evercore are serving as financial advisors to PineBridge, and Davis, Polk & Wardwell is serving as its legal counsel.
Transaction Highlights
Transaction
Acquiring PineBridge Investments from Pacific Century Group
$800 million in cash at closing
$200 million subject to achieving certain 2025 financial metrics
$200 million subject to a multi-year earnout
Strong Strategic Fit
Advances New Frontier strategic priority to grow asset management
Global, scaled institutional public and private credit investment manager
Complementary higher yield strategies
Well-established presence in Asia
Attractive Financially
Expected neutral to EPS in year 1 and accretive beyond
High teens expected internal rate of return
Capital light and source of steady fee income
Potential expense synergies
Timing
Expected to close in 2025
Subject to regulatory approvals and other customary closing conditions
Metlife Investment Management names Kerry O’Brien Global Head of Insurance Asset Management and Liability Solutions
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), announced that it has appointed Kerry O’Brien as global head of Insurance Asset Management and Liability Solutions. She will be responsible for the execution of investment strategies for the MetLife general account, helping drive growth in MIM’s third-party insurance client channel as well as working with teams to drive liability solutions across other client segments.
O’Brien will lead a team with an insurance investing heritage of nearly 150 years and an active role in managing MetLife’s $414.1 billion general account as well as assets for third-party insurance clients. She will drive MIM’s deep capabilities in customizing investment strategies based on the unique characteristics of insurance companies and deliver insurance advisory services, thought leadership and industry expertise.
O’Brien joins MIM from Insight Investments, where she led a team managing assets for clients across life, property and casualty and health insurance companies, risk pools and captive insurers. She previously held several senior investment roles at AIG, leading an emerging market fixed income and sovereign credit team, overseeing the global portfolio management function for AIG business units across public fixed income markets and leading a team managing high grade, emerging market and crossover assets for AIG Life and Retirement portfolios.
“The deep insurance investing experience and client focus that Kerry brings will strengthen our partnerships with insurance clients and drive forward our offering,” said Jude Driscoll, president of MIM. “Kerry will help us build on our leadership position in insurance asset management, enhance our client solutions and broaden our reach across the insurance sector.”
MIM is a top 25 institutional investment manager globally by assets under management1 and is a premier originator of private assets. MIM manages more private fixed income assets for third-party insurance general accounts than any other asset manager.2 It is the largest infrastructure debt investment manager based on worldwide assets3 and is the largest real estate investment manager.4
“I am excited to join MIM, a world-class asset manager with a rich and diverse platform and long-established relationships in the insurance industry and private markets,” said O’Brien. “MIM is uniquely positioned to understand the needs of insurance clients and I look forward to working with our teams to grow and strengthen our partnerships with insurance companies.”