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MetLife (MET) Explores Acquisition of Hayfin Capital Management (revised)
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MetLife, Inc. (MET - Free Report) is reportedly in talks to acquire Hayfin Capital Management, a London-based private credit specialist, per Bloomberg. The potential deal might value Hayfin Capital Management at $1.3 billion. The company has been looking to divest its operations for the past year and has even attracted interest from several parties.
Hayfin Capital Management was founded in 2019 by former Goldman Sachs executives Tim Flynn and Mark Tognolini. The company invests across the private credit spectrum, focusing on direct lending, special opportunities, and high-yield credit.
The acquisition of Hayfin Capital Management would help MetLife’s asset management arm, which has $593.7 billion in assets under management (as of Mar 31, 2024), and strengthen its foothold in the private credit market. The reported talks have surfaced after MetLife Investment Management (MIM) combined its public fixed-income and private capital offerings in April 2024.
If the deal materializes, then it would be a time opportune move for MIM as asset managers are increasing their exposure in the private credit market, which is valued at $1.7 trillion. Hayfin Capital Management has 30 billion euros under management, and the company’s market presence and expertise make it an attractive acquisition prospect for MetLife.
Asset management companies face intense competition due to evolving client needs and increased regulations, pushing them to strengthen their positions by means of expansion. In March 2023, MIM completed the acquisition of Raven Capital Management, a U.S.-based private credit manager specializing in direct asset-based investments. (Raven's leadership team repurchased the Raven business from MetLife Investment Management Holdings, LLC in April 2024.) Moves like this are expected to enhance its product offerings and a attract arge customer base.
Price Performance
MetLife’s shares have gained 35.7% in the past year, outperforming the 24.1% growth of the industry.
The Zacks Consensus Estimate for Ambac Financial’s current-year earnings is pegged at $1.45 per share, which witnessed one upward estimate revision in the past month against no movement in the opposite direction. AMBC beat earnings estimates in all the past four quarters, with an average surprise of 893.5%.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.61 per share, which indicates 28.5% year-over-year growth. It has witnessed six upward estimate revisions against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.9%.
The consensus mark for ROOT’s current-year earnings indicates a 35.6% year-over-year improvement. It beat earnings estimates in all the past four quarters, with an average surprise of 34.1%. Furthermore, the consensus estimate for Root’s 2024 revenues suggests 125.3% year-over-year growth.
(NOTE: We are reissuing this article to add some key information. The original version, published June 4, 2024, should no longer be relied upon.)
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MetLife (MET) Explores Acquisition of Hayfin Capital Management (revised)
MetLife, Inc. (MET - Free Report) is reportedly in talks to acquire Hayfin Capital Management, a London-based private credit specialist, per Bloomberg. The potential deal might value Hayfin Capital Management at $1.3 billion. The company has been looking to divest its operations for the past year and has even attracted interest from several parties.
Hayfin Capital Management was founded in 2019 by former Goldman Sachs executives Tim Flynn and Mark Tognolini. The company invests across the private credit spectrum, focusing on direct lending, special opportunities, and high-yield credit.
The acquisition of Hayfin Capital Management would help MetLife’s asset management arm, which has $593.7 billion in assets under management (as of Mar 31, 2024), and strengthen its foothold in the private credit market. The reported talks have surfaced after MetLife Investment Management (MIM) combined its public fixed-income and private capital offerings in April 2024.
If the deal materializes, then it would be a time opportune move for MIM as asset managers are increasing their exposure in the private credit market, which is valued at $1.7 trillion. Hayfin Capital Management has 30 billion euros under management, and the company’s market presence and expertise make it an attractive acquisition prospect for MetLife.
Asset management companies face intense competition due to evolving client needs and increased regulations, pushing them to strengthen their positions by means of expansion. In March 2023, MIM completed the acquisition of Raven Capital Management, a U.S.-based private credit manager specializing in direct asset-based investments. (Raven's leadership team repurchased the Raven business from MetLife Investment Management Holdings, LLC in April 2024.) Moves like this are expected to enhance its product offerings and a attract arge customer base.
Price Performance
MetLife’s shares have gained 35.7% in the past year, outperforming the 24.1% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
MetLife currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Ambac Financial Group, Inc. (AMBC - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Root, Inc. (ROOT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ambac Financial’s current-year earnings is pegged at $1.45 per share, which witnessed one upward estimate revision in the past month against no movement in the opposite direction. AMBC beat earnings estimates in all the past four quarters, with an average surprise of 893.5%.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.61 per share, which indicates 28.5% year-over-year growth. It has witnessed six upward estimate revisions against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.9%.
The consensus mark for ROOT’s current-year earnings indicates a 35.6% year-over-year improvement. It beat earnings estimates in all the past four quarters, with an average surprise of 34.1%. Furthermore, the consensus estimate for Root’s 2024 revenues suggests 125.3% year-over-year growth.
(NOTE: We are reissuing this article to add some key information. The original version, published June 4, 2024, should no longer be relied upon.)