State Street agrees $485m deal for GE unit

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State Street agreed to buy General Electric’s asset management unit for as much as $485m in cash to expand alternative investments such as private equity and real estate.

Bloomberg News reports that the purchase of GE Asset Management will add about $100bn in assets overseen for institutional clients, including retirement plan sponsors, foundations, endowments, sovereign wealth funds and insurers, according to a statement today from State Street.

The deal “will bring new alternatives capabilities in direct private equity and real estate,” Ron O’Hanley, who heads State Street’s asset management unit, said in the statement.

O’Hanley, a former executive at Fidelity Investments who pushed that firm into new areas, took over State Street’s $2.25tril money management unit last year. Once the top provider of exchange-traded funds, State Street lost ground in recent years to BlackRock and Vanguard Group, which have attracted more client money with new offerings and low fees.

To access the complete Bloomberg News article hit the link below:

State Street Buys GE Asset Management for Up to $485 Million

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