State Street Corporation has agreed to acquire GE Asset Management (GEAM) from GE.
The transaction is expected to increase State Street Global Adviors’ (SSGA’s) assets under management by approximately $100 billion upon closing and add new alternatives capabilities, while strengthening existing fundamental equity and active fixed income teams. Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalized early in the third quarter of 2016.
GEAM has more than $100 billion in assets under management for more than 100 institutional clients, including corporate and public retirement plan sponsors, foundations, endowments, sovereign wealth funds and insurance companies. GEAM and its predecessor organizations have been managing investments for GE’s U.S. pension and other benefit plans for more than 80 years.“As defined benefit plans—both private and public—undergo change, GEAM’s skills coupled with SSGA’s existing capabilities will position us well to provide effective solutions and outcomes to these investors,” says Ron O’Hanley, president and chief executive officer of SSGA. “GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams. In addition, GEAM’s OCIO and Insurance platforms significantly strengthen our capabilities in these fast growing areas.”