State Street Corporation has closed the purchase of GE Asset Management (GEAM) from GE for an undisclosed amount.
State Street said the deal will offer its investment management arm State Street Global Advisors (SSGA) and its clients a range of benefits, including the addition of new alternatives capabilities, strengthening fundamental equity and active fixed income teams.
Under the deal, 99% of GEAM’s assets under management (over $100bn as of March 31 2016) and nearly 270 former GEAM employees will join the SSGA team.
State Street chairman and CEO Jay Hooley said: "This transaction is a key step in our strategy to invest in higher growth and return businesses. It is also an important part of SSGA’s continued evolution as a premier provider of solutions to clients."
SSGA president and CEO Ron O’Hanley said: "GEAM’s asset management capabilities — in areas spanning active management, alternatives and OCIO mandates — are not only complementary to our own, but will also strengthen the range of SSGA’s offerings in the marketplace.
"In this lower-for-longer return environment, we think it is more important than ever for us to develop a broad investment toolkit and solutions mindset to help our clients achieve their investment goals."