Now that it is independent, look for Ameriprise Financial
to join the list of fund firm buyers next year. James M. Cracchiolo
, chairman and CEO of the American Express spin-off, told investors at the Reuters Finance Summit in New York on Monday that the firm could look at deals as soon as next year and that "2006 might be the year of expansion."
Talent and distribution would be two things that Ameriprise would be seeking in a deal, Cracchiolo told investors at the conference, reports Reuters
He pointed to Threadneedle Asset Management
, a U.K.-based firm that American Express purchased from Zurich Financial Services Group in 2003 as an example of the type of deal he is on the lookout for. Threadneedle sold for $570 million.
This time, though, he is looking closer to home and not overseas for targets as the firm is seeking to build out its domestic capabilities.
"It could be in distribution, it could be in asset management. But it will be here [in the U.S.]," said Cracchiolo. He said that Ameriprise would use buyouts to complement its organic growth to meet its 2006 targets of 6 to 8 percent revenue growth, 10 to 13 percent profit growth and 12 to 15 percent return on equity.
"We feel that we can, yes, generate the growth rate by a combination of things," Cracchiolo said, "and none of them have to be a silver bullet."
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