Artisan, the Milwaukee-based firm with $100 billion in assets, would give Aberdeen greater scale in the U.S. and access to a new pool of customers. One drawback for Aberdeen is the weak British pound, which as of Tuesday had lost 16 percent of its value against the dollar since the June 23 Brexit vote shook currency markets.
Other possibilities: Aberdeen could buy Legg Mason. The company is a collection of money-management brands with distinct skills -- stocks, bonds and niches such as infrastructure -- and it’s been busy adding more pieces. Conversely, while Gilbert has said Aberdeen wants to stay independent, it could also make a plausible target for an American company looking to grow in Europe. One possible buyer is T. Rowe Price, which said at a Feb. 2 event for investors that its wants to become more globally diversified. About 95 percent of T. Rowe’s assets are from the U.S.
TCW + Asian Buyer
The scenario: An Asian company buys TCW Group Inc.
TCW, best known for running the biggest actively managed U.S. bond fund, the $78 billion Metropolitan West Total Return Bond Fund, has been majority-owned by Carlyle Group LP since 2012. Private equity firms almost never hold onto purchases forever, so the betting is that TCW, with about $190 billion, will return to the market sometime soon.
The management of TCW, led by CEO David Lippman, has a say about its fate because it owns about 40 percent of the business. Bankers who have met with Carlyle say TCW executives would like to stay independent, which could hinder a sale to a large U.S. asset manager or life insurer that would aim to absorb its operations and cut costs.
Other possibilities: A better bet might be selling all or part of the business to an overseas financial-services company or sovereign-wealth fund that would take a hands-off approach. Prospective suitors could include Japanese firms seeking to expand in the U.S., such as Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc. or Asset Management One, the joint venture between Mizuho Financial Group Inc. and Dai-ichi Life Holdings Inc. Another possible buyer is HNA Group Co., the Chinese conglomerate that recently agreed to buy Anthony Scaramucci’s fund-of-hedge funds firm SkyBridge Capital and acquired a stake in German lender Deutsche Bank AG.
Legg Mason + Cohen & Steers
The scenario: Legg Mason ($3.65 billion market cap) buys Cohen & Steers Inc. ($1.67 billion).
Cohen & Steers, with $58 billion in assets, invests mainly in real estate investment trusts and other assets that emphasize yield. Unlike many active managers, the firm has been attracting money -- $6.7 billion in 2016. Its founders Martin Cohen and Robert Steers, who own more than half the shares, are in their sixties.
Legg Mason last year bought a real estate affiliate, Clarion Partners, that focuses on institutional investors. Cohen & Steers’s clients are a mix of institutions and individuals.
Other possibilities: If Legg isn’t interested, Cohen & Steers is manageable enough in size to make an affordable acquisition for a range of fund companies looking to expand beyond traditional stocks and bonds.
This article was provided by Bloomberg News.