are in the market for U.S. fund companies. On Friday, Nvest, L.P. (NYSE: NEW
), said that it has settled on a suitor. CDC Asset Management, the investment management arm of France’s Caisse des depots Group (CDC) will acquire all of the outstanding units of Nvest, L.P. and Nvest Companies, L.P. for $40 per unit. Nvest is a limited partnership.
The transaction values the firm at $2.2 billion, including the firm’s $311 million in funded debt and includes a 48 percent ownership stake held by MetLife and the partnership's general partner.
Credit Suisse First Boston
represented Nvest and Donaldson, Lufkin & Jenrette
represented CDC Asset Management on the transaction.
Nvest is the holding company for a number of fund companies and investment managers including the following: AEW Capital Management; Back Bay Advisors; Capital Growth Management; Harris Associates; Jurika & Voyles; Kobrick Funds; Loomis, Sayles & Co.; Nvest Advisor Services; Nvest Associates; Nvest Funds; Nvest Managed Account Services Company; Nvest Retirement Services; Nvest Services Company; Reich & Tang Capital Management; Reich & Tang Funds; Snyder Capital Management; Vaughan, Nelson, Scarborough & McCullough; and Westpeak Investment Advisors.
When the transaction is completed, the combined firm will have over $300 billion in assets under management, as of March 31, 2000, making it one of the top twenty money managers in the world and one of the top ten in Europe, according to the companies.
After the merger Nvest will operate under the name CDC Asset Management-North America. It will continue to utilize the holding company structure and Nvest affiliates will retain their investment independence, brand names, management and operating autonomy. Peter S. Voss will continue as Chief Executive Officer of the company and its North American operations and will serve on the Executive Board of CDC Asset Management. Daniel Roy, Chairman of the Executive Board of CDC Asset Management, will be Chairman of CDC Asset Management-North America, according to the companies.
"We are extremely happy today to announce that we will be joining forces with one of the most important financial institutions in Europe," said Mr. Voss. "We have compiled a strong record of growth during the last seven years and will continue to aggressively expand our business in the U.S. We do, however, believe it is essential for us to have a strategic partnership with a major international firm and be part of a truly global firm. Our partnership with CDC Asset Management will enable us to compete more effectively in the growing market for global investment products, both institutional and individual, that is sweeping across Europe and Asia."
"In many ways, CDC Asset Management is the ideal partner for us," Voss added. "It is part of a major financial services firm in one of the largest economies in Europe and has already laid the foundation for a strong presence in other European markets. We, of course, have a solid base of business in the U.S. and the combined firm is well positioned to build on both of our initial efforts in Asia. CDC Asset Management’s expertise in European equity and fixed income management will be a great complement and resource for our premier group of U.S. investment management firms. Their distribution channels will be able to utilize our wide breadth of products for its client base, particularly in the pension, defined contribution and mutual fund businesses. Together, the combined company will be able to offer a comprehensive range of global products."
"The acquisition of Nvest is an important part of our strategy to become a global management house," said Gérard Barbot, Chairman of the Supervisory Board of CDC Asset Management. "Nvest represents an ideal partner for us in the U.S. that significantly enhances our global asset management capabilities with several highly respected brand names and premier products. This transaction offers attractive potential synergies with our current asset management, as well as our distribution partners in Europe and Asia." Daniel Roy, Chairman of the Executive Board added, "We are also happy to have found first-class teams of investment professionals largely recognized for the quality of their portfolio management. In addition to enhancing our presence in the U.S., we are convinced that we will be able, together with Nvest, to widen our product range, including a multi-manager offering and to boost the development of our Asian activities and therefore to better serve our European, U.S. and international clients."
Nvest will continue to work closely with its former unit-holder, MetLife. "Nvest has built a strong relationship with MetLife, beginning with our early roots at New England Financial. We provide investment services for a large number of its products and platforms and MetLife will remain a large and important client. MetLife is one of the top financial services firms in America and we remain committed to performance for current products and to providing new and competitive investment opportunities for its various platforms," said Voss.
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