Market updates and sector developments

AXA has entered into exclusive negotiations to sell its asset manager AXA Investment Managers (AXA IM) to BNP Paribas for cash proceeds of €5.1bn. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership, under which BNP Paribas would provide investment management services to AXA.

Additionally, AXA would receive a €300m consideration from the sale of the Select business to AXA IM, prior to the closing of the proposed transaction. As such, the total estimated transaction value is expected to be €5.4bn, representing a multiple of 15x 2023 earnings.

AXA says its intention to exit the asset management business is in line with the group’s strategy to simplify its business model and focus on core insurance activities, although its customers would still benefit from continued access to an alternatives asset management platform. Indeed, the firm retains full authority over product design, asset allocation and asset-liability management decisions.

The combination of AXA IM and BNP Paribas would create a leading European asset manager, with total AUM of €1.5trn. Completion of the transaction is expected to be finalised by 2Q25.

In other news…

LibreMax agrees fintech partnership
LibreMax Capital has entered into a partnership with fintech platform iCapital to offer wealth managers and advisors globally access to LibreMax’s investment strategy via the iCapital Marketplace. iCapital Marketplace connects wealth managers with a broad selection of alternative investments from leading asset managers on a single platform.

Founded in 2010 by cio Greg Lippmann, LibreMax is a US$10.5bn securitised credit specialist investing across both public and private markets. Under the agreement, the firm aims to bring its investment strategy to a new cohort of investors seeking portfolio diversification.

“Securitised credit is a complex, high barrier to entry market that is well suited to those with the experience and access to data to effectively source, underwrite, execute and manage such investments,” comments Lippmann.

Corinne Smith