French duo Natixis and La Banque Postale have finalised an agreement that establishes an asset manager they hope will play a central role in consolidating the European market in the coming years.
On 28 June, the financial services firm and the bank agreed to combine the fixed-income and insurance-related businesses of Ostrum Asset Management, part of Natixis, with La Banque Postale Asset Management (LBP AM) in a joint venture.
The merger is planned to happen in Q4 2020, subject to regulatory approvals.
Once completed, LBP AM will become a multi-specialist conviction management firm predominantly active in sustainable finance. Ostrum AM did not respond when contacted by Expert Investor to ask what will happen to the remaining divisions of the company once the joint venture is up and running.
The planned European asset manager, with an expected €415bn of assets under management, will be owned 55% by Natixis Investment Managers and 45% by La Banque Postale and cater to large and liability-driven institutional clients.
The personal will be drawn from current staff working at Ostrum Asset Management and LBP AM.
Philippe Setbon, chief executive of Ostrum AM, will lead the as yet unnamed joint venture.
Ibrahima Kobar, currently deputy chief executive and global chief investment officer of Ostrum AM, will become chief investment officer.
Mathieu Cheula, chief information officer and operation officer at LBP AM, will join the management board of La Banque Postale Asset Management on 1 September, and will serve as the deputy chief executive of the joint venture.