Barbell approach: Middle-tier asset managers under threat as M&A ramps up

Henderson/Janus merger start of consolidation

Well-known names in the "squeezed middle" segment of the UK asset management space could disappear over the coming years, as a lack of organic growth and the race to the bottom on fees forces more groups to explore M&A opportunities.

Industry analysts have predicted further consolidation within the sector, following the 'merger of equals' between Henderson Global Investors and Janus Capital announced last week.  The deal, which is due to complete in Q2 2017, will create a group with AUM of more than US$320bn and a combined market capitalisation of approximately US$6bn. To be called Janus Henderson Global Investors, the new group will combine Janus' US specialisation with Henderson's strength in the UK and Europe. Although analysts have identified a number of challenges for subsequent asset manager mergers of this ...