GE says it will “explore opportunities” to sell GE Asset Management (GEAM) to another investment management firm.
The company is seeking buyers that “possess considerable experience managing retirement plan assets, as well as scale and broad distribution capabilities to support continued growth of GE Asset Management’s third-party client base.”
An independent fiduciary will be appointed to review the transaction. The independent fiduciary will approve the asset manager that will be engaged to manage the assets related to GE’s primary benefit plans currently managed by GEAM, including the GE pension plan.
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GE will retain responsibilities as plan sponsor and fiduciary for these plans following the sale.
As part of the transaction, the buyer will separately assume responsibility for the management of GEAM’s third-party client asset base, subject to client consents.
“Over time, there has been significant interest from premier investment firms in acquiring GEAM, reflecting its reputation and attractiveness to others in the asset management industry,” says GE chairman and CEO Jeff Immelt. “As we continue to transform GE to focus on our industrial core, now is the right time to explore such a sale.”
It’s anticipated that the buyer will acquire both GEAM’s assets and team, with the exception of a small number of GEAM employees who will remain with GE to provide investment oversight of the company’s primary benefit plans.
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