The struggle to survive: Asset management M&A set to pick up

Perfect storm of cost saving and regulatory burden behind deals

Asset management merger and acquisition (M&A) activity has lagged previous years in terms of deal volume so far in 2020, but the value of deals is expected to pick up as consolidation continues and boutique firms face growing pressures to sell up.

Recent years have seen a trend of active managers merging or buying smaller competitors in order to drive cost savings amid increasing regulatory burdens and competition, while standing alone has become more difficult for boutique firms.  The past two weeks have seen high-profile examples of asset management M&As, with link-ups between Franklin Templeton and Legg Mason, and Jupiter and Merian Global Investors, in addition to Polar Capital's acquisition of the International Value and World Value equity team from First Pacific Advisors. Jupiter shares boosted on £390m Merian GI acquisit...