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Ignites Series Examining Asset Management Consolidation Features Ropes & Gray Investment Management Partner and Ropes & Gray Global Head of M&A

Practices: Asset Management, Investment Management, Mergers & Acquisitions, Private Equity

Fund industry executives and analysts for months have prophesied a wave of consolidation bigger than any since the financial crisis headed for asset managers, but no one is sure when that wave will crest, writes Ignites in a four-part series examining the climate for asset management mergers and acquisitions. The four articles in the series examined pent-up pressure in the market, issues complicating deal valuations, how product mix affects shops’ matchmaking, and personnel concerns.

James Thomas (Boston), investment management partner and co-leader of Ropes & Gray’s asset management initiative, and Paul Scrivano (New York/San Francisco), partner and Global Head of M&A are both quoted throughout the series. “It seems obvious at a high level that some consolidation is going to take place, but it hasn’t happened in the way you might have expected,” Mr. Thomas notes. While tactics like earn-outs and growth-based incentives can help expedite dealmaking by pushing the valuation questions out by 12 or 24 months, “they are also fertile ground for post-close disputes,” Mr. Scrivano cautions.

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