Generali and Groupe BPCE, parent company of Natixis Investment Managers, have agreed to merge their asset management arms to form a joint venture managing €1.9trn in AUM.
BPCE (through Natixis IM) and Generali Investments Holding would each own 50% of the combined business with balanced governance and control rights.
The new venture would be 9th ranked worldwide by AUM, and the leader in asset management in Europe with €4.1bn in revenues, Generali said in a statement on 21 January.
The deal would leveraging a complementary geographical presence in France, Italy, and the United States, along with diversified expertise and a broad range of high-quality investment affiliates and teams.
With a further ranking of 1st in insurance asset management by AUM worldwide there would be a "clear pathway to further grow the platform as a global leader well-positioned to further expand in the growing third-party insurance asset management segment".
BPCE and Generali would retain full authority over asset allocation decisions for their respective assets.
There was also the prospect of an enhanced offering in private assets to meet the growing expectations of clients in these asset classes.
"To achieve this strategic goal, the newco would notably capitalize on the seed commitment and permanent capital provided by Generali", the statement said.
Global distribution capabilities to serve all types of client needs with innovative, diversified investment strategies and solutions.
Potential to unlock value through a powerful combination achieved with the scope of assets brought by BPCE and Generali, a €15 billion seed money commitment from Generali, as well as via synergies and growth opportunities.
The 50-50 co-controlled business would be underpinned by 15-year contracts. BPCE is to benefit from preferred dividend rights over 2026 and 2027, while Generali would benefit, over the same period, from the repayment tranches of a loan related to the financing of the recently announced MGG acquisition.
A Balanced governance structure would reflect the co-control with BPCE’s CEO, Nicolas Namias, as chairman of the board, and Generali’s CEO, Philippe Donnet, as vice chairman.
Woody Bradford, the current CEO of GIH, would serve as CEO of the entity, and Philippe Setbon, the current CEO of Natixis IM, as deputy CEO.
The parties’ respective employee representative bodies will be consulted before any definitive transaction documents are signed. The closing of the potential combination would be subject to customary regulatory approvals and expected by early 2026.
Philippe Donnet, Group CEO of Assicurazioni Generali, said: “As a leading global integrated insurer and asset manager with a clear long-term vision as a Lifetime Partner to our customers, Generali is committed to further building on the successful transformation and diversification of our Group.
"The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the US to serve the constantly evolving needs of our customers, led by Woody Bradford, Philippe Setbon, Nicolas Namias, and me.
"Our home country Italy and all other countries in which we serve our customers would benefit from an even stronger asset management platform with greater investment capabilities that deliver real benefits to the economy.
"Partnering with BPCE, which shares a similar culture and operational approach, ensures ideal conditions for a smooth and successful integration path for the combined business.
"The joint venture marks a key milestone since the launch of Generali’s asset management business seven years ago and is testament to the significant achievements over the most recent strategic cycles. I am immensely proud of our employees’ and affiliates’ hard work over this period.”
Nicolas Namias, CEO of BPCE, said: “Over the past 20 years, BPCE has built an exceptional asset management franchise through a multi-affiliate model that creates value for all our stakeholders, namely our clients and shareholders, Banque Populaire and Caisse d’Epargne. We are proud to have gathered a distinctive array of talent, with a unique balance of business between Europe and the United States.
"Today we are thrilled to take a new step toward creating the largest asset manager in Europe and a major global player, alongside Generali, a financial institution that shares our values. Together with Philippe Donnet, Woody Bradford, Philippe Setbon and the teams at Generali Investments and Natixis IM, we would leverage our strengths in France, Italy, and the United States to innovate for our clients and transform the asset management sector.
"With our Vision 2030 plan launched last June, we expressed our ambition to expand in France, Europe, and beyond. It’s very exciting to kick off a project that aligns perfectly with these goals.
"Building on our recent announcement of the creation of the European leader in equipment leasing and one of the largest European payment processors, this new ambition in asset management illustrates that the dynamic of transformation and acceleration at BPCE is fully underway.”
