Expansion to fuel asset management deals, report predicts

24 August 2009

Expansion is likely to be the driving factor behind many asset management deals that will occur over the next 12 months, a new report has forecast.

According to a study by Jeffries Putnam Lovell, the fact that capital markets are beginning to recover from the economic downturn and confidence is returning among investors means that the mergers and acquisitions market will be fueled by growth more than by survival.

"The quest by fund firms for global clients and more robust investment capabilities will resume in earnest," the report predicted, but it added that divestitures are still likely to account for the majority of deals involving asset management.

And Aaron Door, managing director at Jefferies Putnam Lovell, suggested that would-be buyers are "re-emerging" due to increasing confidence that the worst of the global economic crisis has passed.

The company has over 25 offices in six countries worldwide and focuses on providing investment banking services to growing and mid-sized businesses.

Written by Gary Cooper

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