Italian insurance giant Generali Group has acquired CM Investment Solutions (CMISL), a UK-based asset management firm, from Bank of America Merrill Lynch for an undisclosed price.
Founded in 2007, CMISL provides alternative undertakings for the collective investment of transferable securities (UCITS) strategies to its clients across the world.
The company has partnered with major alternative asset managers. As of 30 September 2018, the UK firm has more than $11bn in assets under management (AuM).
CMISL CEO Philippe Lopategui said: “We are delighted to join one of the leading insurance and asset management groups. This partnership will enable CMISL to invest in infrastructure and resources, further attract the very best investment managers in the liquid and illiquid alternatives space and deliver tailor made investment solutions to our investors.”
Generali said that the acquisition will accelerate its asset management strategy and further help its product offering and distribution capabilities. The Italian company said that its asset management strategy has been targeting an expansion into alternative strategies and growth outside of Europe.
CMISL will operate independently while leveraging from the support of the insurance group. The company will be fully owned by Generali Investments and retain its headquarters in London.
Generali Investments Partners CEO Carlo Trabattoni said: “The acquisition of CM Investment Solutions Limited is an important step ahead in shaping our multiboutique strategy, as their undisputed expertise in the delivery of liquid UCITS funds and other bespoke strategies gives us the opportunity to offer a selection of top quality alternative products to our clients.”
Generali has managed assets of around €500bn, which are largely comprised of fixed income bonds, with the rest in shares, real estate investments and cash. The Italian company has dedicated an average of 80% to insurance asset management with the rest comprising investments on behalf of non-insurance customers and unit-linked customers.
In late October, Generali signed a deal to buy Polish asset management company Union Investment TFI from Germany-based Union Asset Management.
Prior to that, Generali had also entered into exclusive negotiations with the shareholders of Sycomore Asset Management to acquire a majority stake in the French asset manager.