The Franco-Belgian financial group Dexia has signed an agreement to sell its asset management unit to New York Life Investments for €380m ($512m).
The sale is part of a deal with European regulators in exchange for bailout Dexia Group received in recent years.
The purchase will bring New York Life Investments’ total assets under management to more than $480bn.
John Kim, chairman and CEO of New York Life Investments, said: “The acquisition of Dexia Asset Management will provide our clients with access to the company’s highly-rated funds, strong European platform, and established Australian equities business. It builds upon the strong momentum we’ve achieved in our third-party global asset management business and positions us for further growth in key markets around the world.”
Naïm Abou-Jaoudé, CEO of Dexia Asset Management, said: “We look forward to building upon a complementary and shared long term vision with the benefits, support and resources of New York Life and believe our clients and staff can anticipate this partnership with confidence.”
Dexia Asset Management, which has €74bn in assets under management as of 31 July 2013, provides investment solutions to a diversified client base across 25 countries with centres in Brussels, Paris, Luxembourg and Sydney.
New York Life Investments, a wholly-owned subsidiary of New York Life Insurance Company, has $388bn in assets under management as of 31 July 2013.
The transaction, which is subject to regulatory approval, is expected to close by the end of this year.
Earlier in July, Dexia Group’s deal to sell the asset management unit to Hong Kong-based GCS Capital for €380m was collapsed.