MetLife Investment Management, a subsidiary of the U.S. insurance giant MetLife, Inc., has announced a definitive agreement to acquire PineBridge Investments, a global asset manager, from Pacific Century Group. The transaction, valued at up to $1.2 billion, is structured with an $800 million upfront cash payment, $200 million contingent on achieving specific 2025 financial targets, and an additional $200 million tied to a multi-year earnout. This strategic acquisition is expected to close in 2025, subject to regulatory approvals and customary closing conditions.

The acquisition will significantly bolster MetLife Investment Management's assets under management (AUM), increasing them from $609.3 billion to over $700 billion. This move aligns with MetLife's New Frontier strategy, which aims to accelerate growth in asset management by expanding its global footprint. Notably, more than half of the acquired client assets are held by investors outside the U.S., with approximately one-third located in Asia, positioning MetLife for growth in high-potential markets.

PineBridge Investments, which manages approximately $100 billion in assets, brings to MetLife enhanced capabilities in leveraged finance, collateralized loan obligations (CLOs), and multi-asset strategies. These high-margin business lines are expected to drive meaningful fee income growth. The acquisition excludes PineBridge's private equity funds group and its joint venture in China.

MetLife's President and CEO, Michel Khalaf, emphasized that the acquisition furthers the company's ambition to grow its asset management business, supplementing organic growth with targeted, complementary inorganic growth. The deal is expected to be neutral to earnings per share (EPS) in the first year and accretive thereafter, with a high-teens expected internal rate of return.

This acquisition represents a transformative move in the institutional asset management landscape, enhancing MetLife's ability to offer comprehensive solutions to institutional clients and expanding its presence in the rapidly growing Asian markets. The strategic timing of the deal capitalizes on evolving industry dynamics where scale and diverse capabilities are increasingly critical.