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Who Will Buy Russell Investments?

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seattle

The London Stock Exchange Group PLC, along with its advisor, are prepping the auction process for selling part of Seattle-based Russell Investments. By selectively shopping for nearly 100 buyers, possible acquirers could be a rival money manager, private equity firm, Canadian bank or an asset owner like a sovereign wealth fund? At the time of the London Stock Exchange acquisition of Russell, Russell Investments’ investment management unit posted an EBITDA of US$ 153 million – some are valuing that unit between US$ 1.2 billion to US$ 1.5 billion. Naysayers will critique Russell Investments lower-than-normal operating profit margins. In addition, change in ownership of an asset management firm always brings the risk of clients defecting. This could create a negative cascading effect on the valuation of the business.

Potential Candidates

Private equity firms may seem the likely buyer, as they can typically pay more and have pressures on spending committing capital from limited partners. Asset management firms with good cash flows and capable management, can also get financing easier than other financial institutions. Top contenders include San Francisco-based Genstar Capital which has Hal Strong on its advisory board. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Ascendas-Singbridge Acquires Three Hotels in Osaka

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Singapore’s Ascendas-Singbridge has acquired three hotels in Osaka for 10.29 billion JPY to tap tourism growth in Japan’s third-largest city.

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BlackRock Contemplates Stake in Eurizon

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Asset management giant BlackRock is contemplating purchasing a 30% ownership stake in Intesa SanPaolo’s asset management unit called Eurizon Capital SGR S.p.A. BlackRock is keen on growing its technology business and increase market adoption of its Aladdin platform.

Intesa has been working with UBS to seek out strategic options for Eurizon. Intesa is keen on maintaining control over Eurizon.

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SWFI First Read, June 22, 2018

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JPMorgan Fund Buys 40% of Oxford Properties’ French Portfolio

A fund advised by JP Morgan Asset Management committed €400 million in Oxford Properties’ French portfolio. Essentially, Oxford Properties sold a 49.9% non-managing interest in 32 Rue Blanche, 92 Avenue de France and Paris Bastille. Oxford Properties made its maiden investment in Paris in 2014 when it acquired 32 Rue Blanche.

Oxford Properties is the real estate unit of OMERS.

Temasek Explores Further Cash Commitments to FirstCry

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