Generali and BPCE to establish €1.9trn asset management joint venture

Generali and BPCE have signed a non-binding Memorandum of Understanding (MoU) to create a joint venture between their respective asset management operations.

With over €1.9 trillion of assets under management (AUM), the combined business would reportedly create a global asset management platform with leading positions and critical scale in both Europe and North America.

According to the two firms, the combined business would rank #1 by revenues and #2 by AUM in Europe, #9 by AUM globally, and #1 in insurance asset management by AUM worldwide.

BPCE, through Natixis Investment Managers (Natixis IM), and Generali Insurance Holdings (GIH) would each hold a 50% stake in the combined business, with shared governance and balanced control rights.

The two firms also stated that the entity holding the combined activities would be established in Amsterdam, the Netherlands. At the same time, France, Italy, and the United States would serve as operational hubs for the combined business, overseeing day-to-day operations.

Meanwhile, the Board of Directors of the entity would comprise an equal number of representatives from BPCE and Generali, supplemented by three independent directors jointly selected by the two firms.

Upon the creation of the joint venture, BPCE’s CEO, Nicolas Namias, would act as Chairman of the Board, while Generali’s CEO, Philippe Donnet, would act as Vice Chairman.

Woody Bradford, the current CEO of GIH, will be the CEO of the global entity, and Philippe Setbon, the current CEO of Natixis IM, will be the Deputy CEO.

Philippe Donnet, Group CEO of Generali, commented, “As a leading global integrated insurer and asset manager with a clear long-term vision as a Lifetime Partner to our customers, Generali is committed to further building on the successful transformation and diversification of our Group.

The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the US to serve the constantly evolving needs of our customers, led by Woody Bradford, Philippe Setbon, Nicolas Namias, and me. Our home country Italy and all other countries in which we serve our customers would benefit from an even stronger asset management platform with greater investment capabilities that deliver real benefits to the economy.

“Partnering with BPCE, which shares a similar culture and operational approach, ensures ideal conditions for a smooth and successful integration path for the combined business. The joint venture marks a key milestone since the launch of Generali’s asset management business seven years ago and is a testament to the significant achievements over the most recent strategic cycles. I am immensely proud of our employees’ and affiliates’ hard work over this period.”

Nicolas Namias, CEO of BPCE, said, “Over the past 20 years, BPCE has built an exceptional asset management franchise through a multi-affiliate model that creates value for all our stakeholders, namely our clients and shareholders, Banque Populaire and Caisse d’Epargne.

“We are proud to have gathered a distinctive array of talent, with a unique balance of business between Europe and the United States. Today we are thrilled to take a new step toward creating the largest asset manager in Europe and a major global player, alongside Generali, a financial institution that shares our values.

“Together with Philippe Donnet, Woody Bradford, Philippe Setbon and the teams at Generali Investments and Natixis IM, we would leverage our strengths in France, Italy, and the United States to innovate for our clients and transform the asset management sector. With our Vision 2030 plan launched last June, we expressed our ambition to expand in France, Europe, and beyond.

“It’s very exciting to kick off a project that aligns perfectly with these goals. Building on our recent announcement of the creation of the European leader in equipment leasing and one of the largest European payment processors, this new ambition in asset management illustrates that the dynamic of transformation and acceleration at BPCE is fully underway.”

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