Macquarie Group (MQG) today announced that it has entered into an agreement to acquire Delaware Investments, a leading US-based diversified asset management firm, from Lincoln Financial Group for $US428 ($A516) million, subject to certain closing adjustments. Upon completion of the transaction, the combined assets under management (AUM) of Macquarie and Delaware are expected to be over $US300 ($A361) billion. The acquisition is consistent with Macquarie’s strategy to develop a global asset management capability through building a highly regarded team of investment professionals, offering an attractive suite of investment products and gaining broader access to the world’s largest capital market.
Delaware is a well-respected, US-based diversified asset management firm with over $US125 ($A150) billion in AUM (as of June 30, 2009). Delaware provides investment services to retail and institutional investors through a broad range of managed accounts, separate accounts, mutual funds, retirement accounts, sub-advised funds, and other investment products. Founded in 1929, Delaware is one of the oldest asset management firms in the United States. Delaware clients will be offered opportunities to invest in new products with access to Macquarie’s investment strategies, notably in real assets, global fixed income and alternatives. Macquarie clients across its global network will be offered investment solutions involving Delaware’s investment strategies, in structures designed specifically for them. Macquarie will also provide additional funding to support Delaware’s growth through continued investment in operations, distribution and commitment to expanding its multi-boutique approach.
Shemara Wikramanayake, Global Head of Macquarie Funds Group, said: “Macquarie has a long and successful history in asset management. Since 1980 our asset management activities have grown both organically and through the addition of specialist asset management teams. From that strong base and given current opportunities in the market, we feel now is an ideal time to expand our reach and offering as an asset manager.” “We have a high regard for the Delaware team and are delighted to have them join us. Delaware will form a key element of Macquarie Funds Group’s offering to our clients globally and will significantly enhance our existing North American asset management activities,” said Ms Wikramanayake. “The acquisition of Delaware is a demonstration to our clients of the ongoing commitment we have to developing a global asset management capability with significant scale, product depth, research and investment capacity,” added Ms Wikramanayake.
As part of the transaction, Delaware will continue managing Lincoln Financial general account insurance assets under a long-term contract on financial terms similar to current arrangements as well as provide additional sub-advisory services. Macquarie expects to pay Lincoln Financial approximately $US428 ($A516) million in cash to acquire the business and assets of Delaware, subject to a purchase price adjustment at closing based on any change in net assets. The transaction is expected to close around the end of 2009 and is subject to regulatory approvals and other customary closing conditions.