Allianz sends US asset manager packing to close Structured Alpha fiasco

Allianz sealed its deal to shed the bulk of the US asset manager that had run afoul of clients and regulators in the Structured Alpha scandal, handing assets and select talent to Voya Investment Management for a 24% equity stake in the enlarged asset manager.

Voya takes not only talent and assets, but now has  Allianz in its corner on a long-term distribution deal to take the Voya offer everywhere outside the US and Canada.

The increase in scale plus addition of global reach should add an immediate 6% – 8% cash accretion to Voya’s adjusted operating earnings and boost the adjusted operating margin some 30% – 32%, Voya said in its statement following the deal.

The transfer of talent is "on course" to meet a deadline of July 25.

Voya CEO Christine Hurtsellers (pictured) commented: “With the combination of the highly complementary assets and talented teams of AGI U.S. with Voya IM and our new strategic distribution partnership with AllianzGI, we are excited about the opportunity to provide diverse investment strategies that meet the needs of an even larger, more global client base. Voya IM’s expertise in fixed income, including private strategies, and alternative investments — combined with the income and growth, fundamental equity and private placement capabilities of AGI U.S. — will make for an even stronger value proposition for our clients.”

The CEO of the  Allianz unit, Allianz Global Investors, Tobias Pross commented: “Today’s announcement is a significant milestone in the development of an important strategic partnership for  AllianzGI, which will enable us to increase the range of US-managed investment strategies available to clients in the rest of the world. Voya IM complements our own strengths, footprint and culture, and we look forward to realising the potential of the partnership for clients of both firms.”

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