Guggenheim Partners is investigating the sale of $ 250 billion of asset management units controlled by Scott Minerd, according to those familiar with the subject.
Guggenheim Partners Investment Management, global insurers, sovereign wealth funds and investment pools in Europe, the Middle East and Asia. The Wall Street Journal reported on Wednesday that the deal could cover Guggenheim on the German insurer Munich Re’s entry into the asset management unit.
Discussions take place at an early stage and no agreement can be reached. As people have said, the biggest investors in the company have talks about strategic options.
“Guggenheim calls people who sometimes offer to buy their shares,” said Mike Sitrick, a spokesman for Guggenheim. He refused to comment further. The spokesman of Munich Re refused to comment.
At 59, Minerd aims to diversify its investment base, which accounts for more than 90 percent of investors in the US, and to strengthen the division of the money, which is often managed by insurance companies. More than half of Guggenheim’s assets under management, a few Guggenheim affiliates and Sammons Enterprises Inc., the largest shareholder, such as insurance companies.
Minerd stated this month that the insurance companies and asset managers have long-standing cross-ownership, but also face disputes such as different investment strategies. The best results arise if insurers – or other investors – buy minority shares in asset managers.
Michael Haid, analyst at Commerzbank, said that an agreement on Munich Re’s asset management business could be “logical, you might have some cost savings.” “On the other hand, insurers generally do not want to give up control over their investments. This is part of the value chain, and so while Guggenheim manages the assets of other insurance companies, every transaction will need to be structured logically to avoid conflicts of interest.
Munich Re shares fell 1 percent at 10:48 am in Frankfurt trade. The stock has declined by 1.1 percent this year.
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Recent insurance and asset manager links include Nippon Life Insurance Co. purchasing a 25% stake in TCW Group Inc. for $ 490 million and Logan Circle Partners from MetLife Inc. Fortress Investment Group LLC. last year. In 2014, the TIAA bought Nuveen Investments for about $ 6 billion.
In April, Guggenheim completed its $ 77 billion in funding from Invesco Ltd. for sales. This transaction was led by Jerry Miller, who was hired last year from Deutsche Bank AG as president of Guggenheim Investments.
Bloomberg TV and CNBC, Minerd is one of Wall Street’s most visible bond fund managers. Minerd, a member of the New York investor advisory committee Federal Reserve Bank on financial markets, is known for his brave estimates of market, economy and central bank policies. In 1998 Merrill Lynch joined Morgan Stanley and Credit Suisse First Boston after flying high in the Guggenheim, led by CEO Mark Walter.
Minerd’s funds performed better than even Guggenheim’s management disputes and high-level take-offs. The $ 9.7 billion Guggenheim Total Return Bond Fund has returned an average of 4.3 percent over the last five years, outpacing 96 percent of Bloomberg’s peers.
Guggenheim has 45 percent of employees. It has an investment banking unit headed by various insurance companies and Wall Stearns’ former CEO Alan Schwartz. This company is Sammons Enterprises Inc., which controls 35% of the strategic investment. The company; Todd Boehly, co-founder, who left Eldridge Industries in 2015; and Peter Lawson-Johnston II, the grandson of a Guggenheim family.
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