Securian Financial Group executed a definitive agreement to purchase a majority interest in Asset Allocation & Management Company (AAM) from a private equity fund managed by Stone Point Capital and related investors.
Founded in 1982, AAM is solely dedicated to meeting the investment needs of insurance companies and manages $16.4 billion in insurance company assets from its headquarters in Chicago. AAM will retain its brand, operate independently within Securian Financial Group and be governed by its own board of directors.
"The transaction deepens our commitment to the asset management business and supports our long-term strategy as an enterprise," said Chris Hilger, president, Securian Financial Group. "AAM has a strong reputation in the insurance asset management market and a diversified base of clients. We look forward to having AAM join our family of companies." Hilger will become CEO of Securian Financial Group on January 1, 2015.
AAM will lead new business development in insurance asset management for Securian. John Schaefer, principal and president of AAM, said AAM’s existing asset management platform will be enhanced by Securian’s long-term commitment to the business. The transaction also provides opportunities to expand AAM’s investment capabilities to meet the needs of the insurance market.
"We are excited to have Securian join AAM’s principals as investors in our firm. Securian is well capitalized, has a great reputation and, like AAM, is dedicated to serving the long-term interests of its clients," said Schaefer. "Our management team, employees, client-centric investment strategy and service focus remain unchanged."
Securian’s existing asset management subsidiary, Advantus Capital Management, will lead the enterprise’s business development efforts in the institutional and retail channels. Advantus will continue to manage and grow its existing client relationships.
"We look forward to partnering with AAM as we work together to grow Securian’s asset management business," said Chris Sebald, president of Advantus. "This transaction is just one example of Securian’s commitment to grow all its asset management channels."
The transaction is expected to close December 31. Goldman, Sachs & Co. represented Securian Financial Group in the transaction and Keefe, Bruyette & Woods, Inc. represented AAM, Stone Point and the other sellers.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. One of the nation’s largest financial services providers, Securian is the holding company parent of a group of companies, including Advantus Capital Management. As of October 31, 2014, Securian held nearly $46 billion in assets under management and more than $1 trillion of insurance in force.