KPMG Investment Management M&A Monthly


January 2010	SEARCH ANALYSIS ARCHIVE FEEDBACK

KPMG ANALYSIS

Registration of Advisers to Private Pools of Capital: Implications for a New World

The economic crisis has precipitated a proposal to amend the Investment Advisers Act of 1940, requiring advisers to private pools of capital to register with the SEC.

The Importance of Managing Working Capital

Companies that can generate cash from working capital and other parts of their balance sheet will be better positioned to respond to market changes and create shareholder value.

Feature of the Month

Banks May Shed Private Equity Assets in Obama Plan

Proposed plan to limit financial risk-taking could force banks to shed parts of their private equity operations.

NEWS FROM REUTERS

Prospect Capital Sweetens Bid for Rival Allied Capital

The investment firm sweetened its offer to buy rival Allied Capital deal, which is now valued at $904 million or 40 cents for each Allied Capital share, up from its previous offer of 38.5 cents.

Nomura, Ashmore Bid for BNP China Fund Stake

Nomura Holdings and London-based Ashmore Group are bidding for a 33 percent stake in China's BNP Paribas Asset Management.

FBR Sees Wealth Management Revenue Rebounding in 2010

As the economy stabilizes and clients begin reinvesting, analysts predict higher 2010 revenue and increased net revenue per adviser in the wealth management business.

Hunger for Buyout Deals Back After Forced Diet

Buyouts are finally returning for the deal-hungry private equity industry as the cost of debt has fallen.

Citi Mulling Sale of Real Estate Unit

The bank is in advanced talks to sell its real estate investment business, which is valued between $5 billion to $10 billion.

Other News

A Hedge Fund Resurgence

The increased hedge fund regulation coupled with a recent uptick in hedge fund performance will likely entice some advisors to put their clients back into hedge funds, or even allocate new assets.

Macquarie Kicks Tires in South Korea

BANKING DAY NEWS BITES [LEXISNEXIS]The Australian investment bank is one of the bidders to buy the South Korean securities and asset management business of U.S. insurer Prudential.

Hedgies, Private Equity Could Gain From Obama Plan

REUTERSHedge funds and private equity could be surprise winners from U.S. President Obama's clampdown on risk-taking by banks, as competition in trading is cut and star managers take their skills elsewhere.

INDUSTRY M&A ACTIVITY

BNY Mellon agreed to acquire PNC's Global Investment Servicing (GIS) business for $2.31 billion. GIS provides fund accounting, transfer agency and outsourcing solutions for asset managers and financial advisors and has $855 billion in assets under administration. (2/2)

Affiliated Managers Group and the management team of Artemis Investment Management have reached a definitive agreement to purchase 100% of the equity of Artemis from Fortis Bank, a subsidiary of BNP Paribas Group. Terms were not disclosed. (2/1)

Evercore Wealth Management acquired Morse Williams & Co., a New York-based investment adviser with $190 million in assets under management. Terms were not disclosed. (1/25)

BlackRock acquired Helix Financial Group, a North Carolina-based advisory firm to commercial real estate lenders. Terms were not disclosed. (1/15)

Midwestern financial service firms Rehmann and Dawson Wealth Management have merged to create a business managing $1.4 billion in client assets. Concurrently, Rehmann agreed to acquire two undisclosed Ohio-based investment advisory firms. Terms were not disclosed. (1/13)

Aberdeen Asset Management agreed to pay GBP 84.7 million ($137.1 million) for certain fund management assets and contracts from The Royal Bank of Scotland. Aberdeen will acquire approximately GBP 13.5 billion ($21.9 billion) of assets under management. (1/8)

Source: Company press releases.

MERGER STATISTICS

M&A activity showed signs of stabilizing, with Q409 deal volumes up slightly (9.1 percent) from Q309, reversing a trend of declining deal volumes for the last several quarters. Recent deal activity continues to be driven by financial institutions looking to divest non-core asset management units and consolidation in the fund administration sector.

View data detail.

KPMG’S TRANSACTION SERVICES PRACTICE

KPMG’s Transaction Services and M&A Tax practices comprise over 600 partners and professionals in the United States, solely devoted to providing acquisition and divestiture support and advisory services to strategic and financial investors.

For more information about KPMG's transaction services capabilities in the investment management sector please contact: Miguel Sagarna, Principal at 212 872 5543 (msagarna@kpmg.com) or Brian Seidler, Director at 212 954 3217 (bseidler@kpmg.com).

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