Activist investor Trian Fund Management has taken significant stakes in Invesco and Janus Henderson and plans to pursue deals to rival the world’s largest asset managers, according to reports.
The Wall Street Journal reported that Trian has built stakes in both Invesco and Janus Henderson of 9.9%, with the two positions accounting for a combined $900m.
The Journal, citing people familiar with the matter, reported that the money for the stakes comes from a Trian fund set up with the aim of consolidating asset managers. The fund has money remaining to spend on further deals.
Trian has initially asked for seats on the Invesco board and thinks that the asset manager could grow further via acquiring rivals, such as Janus Henderson, the WSJ reported.
A spokeswomen for Invesco gave Citywire the following statement: ‘Invesco welcomes high quality investors in our firm. We value shareholder input and engage with our major shareholders in a constructive dialogue aimed to strengthen our business. We are committed to being the most client centric firm in the industry as we additionally focus on our employees and shareholders.’
A spokesperson for Janus Henderson had not responded to a request for comment at the time of publication.
Trian is led by chief executive Nelson Peltz, who has a track record of investing in the asset management industry, most recently taking a stake in Legg Mason, for the second time, which ended when that firm was bought by Franklin Templeton in a $4.5bn deal.
Both Invesco and Janus Henderson have been involved in high-profile mergers and acquisitions with rival asset managers in recent years.
In 2018, Invesco acquired OppenheimerFunds in a $5.7bn deal. In 2017, Janus Capital merged with Henderson Global Investors.
While both deals gave the firms additional scale and a wider range of products, neither has been without their challenges as wider pressures on active management continuing to weigh on flows.
At the end of August, Invesco had assets under management of $1.2tn, Janus Henderson had $336.7bn in assets at the end of June.
The world’s largest asset manager, BlackRock, had assets under management of more than $7tn at the end of June.