MutualFundWire.com: An Acquisitive AM's Chief Predicts Dramatic Industry Consolidation

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Wednesday, March 13, 2019

An Acquisitive AM's Chief Predicts Dramatic Industry Consolidation

Take it from a big asset management dealmaker: massive attrition and consolidation may be just over the horizon.

Martin L. Flanagan
Invesco
President and CEO

Marty Flanagan, CEO of Invesco [profile], tells the Financial Times that, over the next five years, one third of the asset management industry could be gone. Flanagan's remarks come as the publicly traded, Atlanta-based asset manager is poised to close next quarter on its biggest acquisition yet, the latest in a long list of Invesco deals since Flanagan took the helm in 2005.

"The industry is going through dramatic changes right now," Flanagan tells the FT. "Winners and losers are being created today like never before. The strong are getting stronger and the big are going to get bigger."

Scale is more critical than ever before, Flanagan argues, perhaps unsurprisingly given that his latest deal will push Invesco above the $1-trillion mark in AUM. Yet, Invesco is not the only big industry acquirer making moves of late, so Flanagan is clearly not alone in seeing the opportunity to boost scale through consolidation. And fundsters know all too well the investment platform rationalization trend, pointed to by Flanagan, that they are facing with key broker-dealers and other distribution partners.

Printed from: MFWire.com/story.asp?s=59437

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