Foresters Announces Sale of U.S. Asset Management Business

April 15, 2019

On April 9, 2019, Foresters Financial Services, Inc. announced that it had entered into agreements to sell the assets of its U.S. asset management business to Macquarie Investment Management and to sell select assets of its U.S. brokerage and advisory business to Cetera Financial Group, Inc.Under the terms of the agreement with Macquarie Investment Management (“Macquarie”), Foresters Financial Services, Inc. (“Foresters”) will sell the assets of its U.S. asset management business, including First Investors mutual funds. In a separate transaction, Foresters will sell select assets of its U.S. brokerage and advisory business to Cetera Financial Group, Inc. (“Cetera”). Foresters expects to continue to have relationships with both Macquarie and Cetera, as Macquarie will also manage a portion of Foresters’ general account supporting its life insurance business and Foresters will have a distribution relationship with Cetera. Both transactions are subject to customary regulatory and shareholder approvals, but are expected to close by the end of 2019. Further terms of the deals were not disclosed.

Foresters provides financial services to families and individuals. After the closings of the transactions, Foresters intends to continue to focus on its life insurance business. Foresters was advised in the transactions by Oppenheimer & Co. Inc.

Macquarie is an asset manager with more than $234.5 billion in assets under management as of December 31, 2018. Macquarie Investment Management is a division of Macquarie Asset Management, which has more than $374.8 billion in assets under management as of December 31, 2018.

Cetera is a network of independent firms providing professional advice to families, individuals and retirement plans.

To read the press release: please click here.

 


Categories

Investment Manager M&A, Transactions