Back to top

Image: Bigstock

MetLife's Logan Circle Buy to Boost Investment Management

Read MoreHide Full Article

MetLife, Inc. (MET - Free Report) recently announced that it has acquired Logan Circle Partners, L.P. from Fortress Investment Group LLC (FIG). The transaction worth $250 million is primarily aimed at offering MetLife’s clients a wider range of investment opportunities.

Why Logan Circle Partners?

Logan Circle Partners with its vast range of traditional fixed income strategies and $37 billion in assets under management seems to be a perfect fit for MetLife.

The deal will most likely strengthenthe MetLife’s Investment Management’s expertise further in specialty fixed income assets including real estate, agriculture, private placements and structured products.

Value Addition from the Deal

The buyout looks to be an important milestone for MetLife as it will help in the expansion of domestic and international investment management business for third-party clients. In addition, management at MetLife expects that the combined platform along with additional distribution channels will not only provide its clients a stretched range of investment opportunities but would also cover solutions across all the institutional fixed income and real estate markets.

Meanwhile, Logan Circle Partners also remains optimistic to join MetLife Investment Management as it anticipates its mission of delivering “best-in-class investment management solutions” to be aligned with MetLife’s client-centric approach as well as expertise in investment management.

Share Price Performance

MetLife’s solid cash position has enabled it to grow inorganically. Year to date, the shares have lost 10% while the industry has gained 3.5%. The shares have underperformed the industry due to declining revenues, regulatory hurdles etc, add to the company’s top line.

Zacks Rank and Stocks to Consider

MetLife presently has a Zacks Rank #5 (Strong Sell).

Investors interested in the finance sector can consider better-ranked stocks likeMarkel Corporation (MKL - Free Report) , Credit Acceptance Corporation (CACC - Free Report) and American Financial Group, Inc. (AFG - Free Report) . While Markel Corp and Credit Acceptance sport Zacks Rank #1 (Strong Buy), American Financial Group carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Markel Corporation, the property and casualty insurer delivered positive surprises in two of the last four quarters with an average of 21.1%.

Credit Acceptance, a consumer loans providing company delivered positive surprises in the trailing four quarters with an average of 6.7%.

American Financial Group, the property and casualty insurer delivered positive surprises in three of the last four quarters with an average of 17%.

New Report: An Investor’s Guide to Cybersecurity

Cyberattacks have become more frequent and destructive than ever. In fact, they’re expected to cause $6 trillion per year in damage by 2020.

The cybersecurity industry is expanding quickly in response to these threats. In fact, a projected $170 billion per year will be spent to protect consumer and corporate assets. Zacks has just released Cybersecurity: An Investor’s Guide to Locking Down Profits which reveals 4 promising investment candidates.

Download the new report now>>

Published in