The asset management industry should expect a revival in 2010 thanks to an anticipated rebound in deal activity, according to a new Jefferies & Co. study.
The 2009 review of mergers and acquisitions in the global asset management, broker dealer and financial technology industries titled "On The Road Again," which was released today, hypothesizes that “a number of factors will contribute to robust deal activity” in the sector, a Feb. 22 press release said.
The results of the Jefferies’ financial institutions group-led study state that a few “key trends” will unfold in 2010. For instance, divestitures are said to taper off while independently owned asset manager activity will flourish. Also, pure-play asset managers, and private equity sponsors, in addition to pursuits in the financial technology and securities sector, will be pivotal players in rallying the bounce back.
Separately, asset managers will look to “capitalize” on bank-vacated investment opportunities as well as seeking growth overseas for their products and distributions, the New York- and London-based company’s study said.
“Despite the severe markets of early 2009, the global asset management industry rebounded as market conditions improved following the March lows,” Aaron Dorr, Jefferies' financial institutions group managing director, said in the release. “While 2009 was a very volatile year for the industry, it also proved to be a very transformative one, setting the industry on a course to consolidate further in the post-Great Recession era.”
Currently, the 45-year old global securities and investment-banking firm offers “unique investment ideas…innovative asset management strategies,” advisory and capital raising to its clients.