Allianz GI announced yesterday that it had entered into a memorandum of understanding (“MOU”) with Voya Financial relating to a strategic partnership whereby AllianzGI would transfer selected investment teams and assets comprising most of its US business (“AGI US”) to Voya IM in return for an up to 24% equity stake in the enlarged asset manager. Definitive documentation is anticipated to be finalised in the coming weeks, and completion of the transaction is subject to customary closing conditions.
Underpinning the partnership will be the anticipated transfer of highly complementary and internationally established investment teams, select client service and sales professionals, and associated assets under management from AGI US to Voya IM.
The move follows an investigation by the SEC (the US Securities and Exchange Commission) into a multi-billion dollar fraud they committed in a series of funds called Structured Alpha.
Allianz GI will pay more than $1 billion to the SEC and $5 billion to mutual fund investors. In particular, these funds lost billions of dollars after the Covid-19 market crash.
A second, important pillar of the planned partnership will be the establishment of a global, long-term, strategic-distribution partnership whereby AllianzGI distribute Voya IM’s investment strategies outside the US, providing its global client base with a broader range of complementary investment strategies.