General Electric Co. (GE) has announced that it is looking to sell its GE Asset Management, the company's asset management arm, according to a press release issued by GE.
The company is looking for a leading investment management firm to take over its asset management business.
GE said in the press release that they will be seeking buyers that "possess considerable experience managing retirement plan assets."
They will also be looking at the buyer's scale and broad distribution capabilities to support the continued growth of GE Asset Management's third-party client base.
Jeff Immelt, chairman and CEO of GE, said in the press release that there has been significant interest from other investment firms to acquire GE Asset Management.
"GE Asset Management has world-class investment capabilities and an experienced, talented team that has done a terrific job managing assets for benefit plans serving GE employees and retirees, as well as other investors," he said.
He adds in the press release that "over time, there has been significant interest from premier investment firms in acquiring GEAM, reflecting its reputation and attractiveness to others in the asset management industry."
Dimitri Stockton, the chairman, president and CEO of GE Asset Management, also said in the press release that the firm offers a "unique value proposition to potential buyers."
"Our firm is well positioned for continued growth, with valuable expertise in areas including outsourced CIO/total plan management, active management, alternative assets, asset allocation, manager selection, risk management, and fiduciary governance," he said.
Reuters adds that GE's plan to unload its asset management arm comes after the company announces in April that it is looking to sell $200 billion of its GE Capital assets.
GE is looking to shed its financial services unit as it focuses more on its industrial core.
GE said in the press release that the net sales of the transaction will be deposited into the GE Pension Trust.
This will increase the trust assets that are used to pay GE's pension plan benefits.
GE also said in the press release that the buyer will separately assume responsibility for the management of GE Asset Management's third-party client base as part of the transaction.
This will still be subject to the consent of the client.
