The proposed sale of AXA’s €844bn investment management business to BNP Paribas could see the creation of two enlarged real estate and infrastructure fund managers with assets under management (AUM) of €108bn and €19.7bn, respectively.
The French insurer announced on Thursday that it had entered into an exclusive negotiation to sell AXA Investment Managers to French banking group BNP Paribas for €5.1bn.
Under the terms of the proposed transaction, AXA and BNP Paribas would enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA.
The deal would see BNP Paribas taking on a larger investment management business, boosting its total AUM to approximately €1.5trn.
This would include AXA IM Alts, which manages €82bn in private real estate, €90bn in private debt and alternative credit, and €17bn in infrastructure.
At the end of 2023, BNP Paribas Real Estate Investment Management managed €26.1bn in real estate assets, while BNP Asset Management managed €2.7bn in infrastructure investments.
It is unknown how the merger will affect the real assets investment businesses of both companies.
AXA IM Alts is led by global head Isabelle Scemama, while BNP Paribas REIM is led by Jean-Maxime Jouis, global head of investment management and CEO of BNP Paribas REIM France.
Asked what the merger would mean for the AXA IM Alts business, AXA IM stated: “We can confirm the information that exclusive negotiations have begun between AXA Group and BNP Paribas regarding the sale of AXA IM. In a consolidating industry where scale is a key factor to pursue sustainable growth while continuing to serve clients with the best standards, the announcement made by our shareholder represents a major growth opportunity for AXA IM. The potential combination with BNP Paribas Asset Management could form a European market-leading asset management firm, with over €1.5trn of AUM.
“As we enter this phase of discussions which will extend over the next few months, there will be no change to our organisation, products, services and operations. The sole focus of our teams remains on delivering performance, serving our clients and growing our business. We are taking all necessary measures to ensure continuity with our clients and the management of their assets. Closing is tentatively set to Q2 2025. We shall inform our employees, our clients and all stakeholders on key milestones as we progress.”
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