GEAM manages over $100bn in assets for more than 100 institutional clients. State Street said the transaction will add new alternatives capabilities and strengthen existing fundamental equity and active fixed income teams.
The deal brings GEAM active management, alternatives and outsourced chief investment officer (OCIO) capabilities to State Street Global Advisors (SSGA), an industry firm with $2.3 trillion in assets under management globally.
SSGA will manage assets of the GE pension plan currently managed by GEAM and take responsibility to run GEAM’s other client assets, subject to client approvals.
GEAM also manages portfolios for GE employees and other individual investors via its mutual fund platform.
The transaction is subject to regulatory approvals and other customary closing conditions. It is anticipated to be completed early in the third quarter of this year.
SSGA president and CEO Ron O’Hanley said: "GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams.
"In addition, GEAM’s OCIO and Insurance platforms significantly strengthen our capabilities in these fast growing areas."
GEAM chairman, president and CEO Dmitri Stockton said: "State Street’s acquisition of GEAM will combine the proven capabilities of two leading asset management firms with great track records and complementary investment offerings, and create a unique opportunity to expand these areas of our businesses together as we leverage each other’s considerable investment experience and expertise."
Image: State Street’s corporate headquarters located in Boston, Massachusetts. Photo: courtesy of Garrett A. Wollman.
