Home ListingMarch 30, 2016

State Street to Buy GE Asset Management

The $485 million deal will increase the financial giant’s assets by $100 billion.

Reported by Featured Author

State Street Global Advisors (SSGA) has agreed to acquire GE Asset Management (GEAM) for $485 million.

The deal is expected to complete in the third quarter of 2016, according to a statement from SSGA.

GEAM has roughly $100 billion in assets, including more than 100 institutional clients and a number of outsourced-CIO (OCIO) mandates. It has run money for the General Electric pension for more than 80 years.

The US-based manufacturer announced plans to sell its fund management business in September in order to “focus on our industrial core,” said CEO Jeff Immelt.

“GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income, and hedge fund teams,” said SSGA President and CEO Ron O’Hanley. “In addition, GEAM’s OCIO and insurance platforms significantly strengthen our capabilities in these fast growing areas.”

The transaction will mean GEAM is “well positioned to continue to deliver superior results in the management of assets on behalf of GE benefit plan participants,” said Dmitri Stockton, chairman, president, and CEO of GEAM.