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HNA Group Has Ambitions for an Asset Management Empire

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HNA Group is an expanding Chinese conglomerate that has been on an overseas spending spree, armed with roughly US$ 145 billion in assets. HNA Capital, the financial services business of HNA Group, is keen on building a global asset management business.

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New York-based HNA Capital U.S., a subsidiary of HNA Capital, has agreed to buy a 24.95% stake in U.S.-based OM Asset Management, a unit of U.K.-based Old Mutual plc. OM Asset Management, as of December 31, 2016, had £395 billion of funds under management. HNA Capital is paying US$ 446 million for the stake in the asset management unit. Per deal terms, Old Mutual’s stake in OM Asset Management is being reduced from 51% down to 26%. In addition, HNA Capital will be given two board seats on OM Asset Management. HNA Group beat out two other rivals in the deal which include private equity firm TPG Capital and Advent International.

Deal Details

This transaction is taking part in two price tranches. Old Mutual is selling shares in OM Asset Management first at US$ 15.30 per share (9.95% ownership stake), and then for US$ 15.75 per share (15% ownership stake) – each slight premiums to a set price date. PJT Partners was the financial advisor for HNA Group on the deal, while Bank of America Merrill Lynch and Evercore had advised Old Mutual. Skadden Arps and Linklaters served as legal advisors to Old Mutual in connection with the transaction. In December 2016, Old Mutual, in the open market, sold down its ownership from 66% to 51%.

Ambitions

This is HNA Group’s second overseas foray into asset management companies, bypassing the Fortress deal in which Japan-based SoftBank Group had bought out. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

ADIA Seeks to Sell KIC Headquarters

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The Abu Dhabi Investment Authority (ADIA) is seeking to sell the building that houses the headquarters of the Korea Investment Corporation (KIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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BMO and OTPP Test Blockchain Canadian Dollar Debt Deal

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The Bank of Montreal (BMO) and the Ontario Teachers’ Pension Plan (OTPP) participated in a landmark blockchain Canadian-dollar debt transaction. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Just Group Acquires Corinthian Pension Consulting

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Just Group plc acquired a 75% ownership stake in the holding company of Corinthian Pension Consulting Limited (Corinthian Pension Consulting). Operating in the institutional world for over 12 years, Corinthian Pension Consulting provides advisory services to defined-benefit pension scheme trustees and scheme sponsors undertaking bulk scheme exercises. The remaining 25% will be retained by current shareholders of Corinthian Pension Consulting. Robert MacGregor will continue to lead Corinthian Pension Consulting, as its Chief Executive Officer. Furthermore, Corinthian Benefits Consulting Limited and Corinthian Affinity Solutions Limited will continue to operate as before, becoming part of a newly formed holding company, Corinthian Group Holdings Limited.

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