Insurer targets UK and global markets with new £135B fund platform after merging European units
A major consolidation is reshaping the European asset management landscape, as Great-West Lifeco Inc. merges its European divisions to launch Keyridge Asset Management, a new money manager headquartered in London’s financial district.
According to a company statement, Keyridge will combine the European operations of Canada Life Asset Management, Setanta Asset Management, and Irish Life Investment Managers.
The new entity will oversee more than US$178bn in assets and serve institutional and wholesale clients. Its suite of products will include multi-asset, fundamental equities, and systematic quant funds.
Keyridge Asset Management, led by CEO Patrick Burke, is targeting a third of its sales in the UK, with the remainder split evenly between North American and European markets, as reported by Bloomberg.
Burke, who heads a team of 300, indicated plans to expand the UK team by hiring additional senior investment professionals in the coming months.
The business will be based at 22 Bishopsgate, the largest office building in London
The move comes as Great-West Lifeco, backed by Canada’s Desmarais family, pursues higher-growth opportunities in financial services and sheds some legacy assets.
The UK market, the world’s second-largest investment management hub, presents fierce competition. Traditional stockpickers such as Aberdeen Group Plc and Jupiter Fund Management Plc have faced years of outflows, challenged by the rise of lower-cost, passively managed funds and high fixed costs.
Burke observed that the UK asset management industry has experienced significant turnover. He pointed out that knowledgeable professionals are seeking growth opportunities.
While not every business is focused on expansion, Burke stated that his firm is currently in a growth phase.
In its latest quarterly report, Great-West Lifeco posted base earnings of $1.23bn, or $1.33 per share, a 15 percent increase from the third quarter of 2024.
Net earnings reached $1.16bn, or $1.25 per share, up 35 percent year-over-year.
