Generali buys €144bn US asset manager in giant deal with Cathay Life

Generali Investment Holdings is to acquire US headquartered global asset manager Conning Holdings and its affiliates with support from the firm's current owner, Cathay Life.

In a statement on 6 July,  Conning said the transaction is subject to customary regulatory review and is expected to close in the first half of 2024.

Following the acquisition of Conning and its subsidiaries, the group's total assets under management will increase to €775bn.

Conning and its subsidiaries are among the leading global asset management companies dedicated to insurance companies and institutional clients with approximately USD157 billion, or EUR144 billion, of AUM. The business scope includes Conning, Octagon Credit Investors, Global Evolution and Pearlmark.

As part of the transaction, Cathay will enter into a partnership with Generali by contributing its ownership of Conning and its Affiliates in exchange for 16.75% ownership of GIH.

In addition, Cathay has agreed to a minimum 10-year financial commitment in relation to specific insurance assets under management that will continue to be managed on its behalf by the Generali Asset Management businesses including Conning and its Affiliates.

Woody Bradford, chief executive officer and chair of the Conning Holdings Limited Board said: "This is a highly complementary business combination that presents exceptional long-term opportunities for Conning and our Affiliates - maintaining our firms' ability to provide performance and service to our clients while extending our global investment capabilities.

"We believe this transaction provides stability for our clients and employees, maintains continuity of leadership and strategy, and will generate new collaboration opportunities with Generali and its affiliates to strengthen both firms."

As part of Generali Asset Management's ecosystem of affiliates, Conning and its Affiliates will continue to operate autonomously under the current management teams, including the leadership of Woody Bradford.  

Following the closing, Conning and its majority-controlled affiliates Octagon Credit Investors, LLC, Global Evolution Holding ApS, and Pearlmark Real Estate, L.L.C., are expected to receive on-going strategic support from Generali and Cathay, including additional assets to manage, collaboration on opportunities to seed new strategies, and the exploration of other potential investments to support growth in the business over time.

Conning and its Affiliates will also benefit from regular interaction between the firms comprising Generali Asset Management to share best practices and leverage GIH's shared operational and risk frameworks, the statement further said. 

Conning and its subsidiaries are among the leading global asset management companies dedicated to insurance companies and institutional clients with approximately €144bn AUM. 

Philippe Donnet, Group CEO of Generali, said: "Through the acquisition of Conning and its Affiliates, and the long-term partnership with Cathay Life, Generali will enhance its asset management capabilities, strengthen its footprint in the key U.S. and Asian markets, and create a platform to deliver on its broader asset management strategic ambitions in order to maximize value for all stakeholders, including Generali's insurance business."

Hong-Tu Tsai, chairman of Cathay Financial Holdings, said: "As a client and shareholder since 2011, Cathay has enjoyed a long and successful partnership with Conning.

"We are now very excited about continuing to remain involved as a shareholder in GIH and to work together with Generali to support the continued growth of Conning. We also look forward to seeking new opportunities for further collaboration, including in the Asia Pacific."