HONG KONG — Hong Kong investment firm Pacific Century Group (PCG), founded by billionaire Richard Li, is seeking to sell its majority stake in asset manager PineBridge Investments, according to three people with knowledge of the matter and a deal document seen by Reuters.
PCG has hired JPMorgan to run the sales process and has held preliminary discussions with a number of financial institutions, said two of the sources. All of the sources declined to be named because the information is confidential.
PineBridge managed assets worth about US$157 billion (S$210 billion) at the end of 2023, according to its website.
Li's PCG acquired the New York-headquartered business from US insurer American International Group in 2010 for US$277 million, at a time when it managed US$87.3 billion of assets.
PineBridge and JPMorgan declined to comment.
A spokesperson for PCG on Friday declined to comment on its move to offloading a stake in PineBridge at the group level.
However, the spokesperson added PCG doesn't plan to sell stakes in PineBridge's joint venture with Huatai in China and PCG remains committed to the market.
A profitable China joint venture, Huatai-PineBridge Fund Management accounted for about one-third of the parent's total assets under management, according to the sales document.
The divestment, if successful, would see PCG exit from a money-losing fund house amid heightened market volatility and intense competition in the asset management business that has contributed to the losses.
Close to 60 per cent of PineBridge's portfolio exposure is to the Asia-Pacific region, according to the deal document shared with potential bidders. Rising interest rates and geopolitical tensions have roiled regional asset prices.
PineBridge managed about 25 per cent of the assets of Hong Kong-based FWD, an insurance business owned by PCG, as of end-September, according to the sale document.
The asset manager swung to a loss of US$78 million in 2022 from a US$15 million profit the prior year, according to the document, which did not provide 2023 results.
In 2023, the asset manager's net profit after tax was over US$40 million, according to one of the sources. PCG declined to comment on the financial performance.
PineBridge has more than 700 employees across 25 offices, including 230 investment professionals.
While PCG has a controlling stake in PineBridge and is looking to exit all of its holding, the asset manager's management, employees and advisers together hold small minority interests.
PCG's other businesses include FWD, which has failed three times to float its shares, telecom and media group PCCW, Hong Kong 5G provider HKT, and property developer Pacific Century Premium Developments.
FWD's latest application to list in Hong Kong expired in September, filings from Hong Kong bourse showed. FWD declined to comment.
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Source: Reuters
