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JPMorgan (JPM) Announces Acquisition of Campbell Global

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JPMorgan’s (JPM - Free Report) asset management division — J.P. Morgan Asset Management — announces the acquisition of Campbell Global, LLC, a forest management and timberland investing company. The move comes as the Wall Street giant seeks to directly impact the transition to a low-carbon economy and provide environmental, social and governance (“ESG”)-minded investment opportunities.

The terms of the deal with BrightSphere Investment Group, the parent company of Campbell Global, have not been disclosed yet.

Based in Portland, OR, Campbell Global manages assets worth $5.3 billion. Moreover, with more than 150 employees, it manages in excess of 1.7 million acres worldwide.

With this deal, JPMorgan will become a significant supporter of blooming forests around the world.

The chief executive officer (“CEO”) of J.P. Morgan Asset Management, George Gatch, stated, “This acquisition expands our alternatives offering and demonstrates our desire to integrate sustainability into our business in a way that is meaningful. Investing in timberland, on behalf of institutional and high net worth individuals, will allow us to apply our expertise in managing real assets to forests, which are a natural solution to many of the world's climate, biodiversity and social challenges.”

John Gilleland, CEO of Campbell Global, said, “We have always held that there should be no tradeoff between investing wisely and investing responsibly. We made our first institutional investment in timberland 35 years ago, have since planted over 536 million trees, and emerged as a leader in sustainable forestry. We look forward to continuing these efforts with J.P. Morgan. Importantly, this transaction further positions Campbell Global to serve our existing world-class clients at the highest standard.”

Anton Pil, the global head of J.P. Morgan Global Alternatives, commented, “Acquiring Campbell Global provides us with an opportunity to strengthen and diversify our ESG focus, including building a robust carbon sequestration platform. Timber investing further enhances our asset class offerings in our alternatives business, ultimately passing along the unique benefits of forest management to our clients.”

So far this year, shares of JPMorgan have gained 18.3% compared with 20.3% growth recorded by the industry.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Currently, the company carries a Zacks Rank #3 (Hold).

A better-ranked stock from the finance space is SVB Financial Group (SIVB - Free Report) . Its earnings estimates for the current year have moved up marginally over the past 30 days. So far this year, its shares have gained 42.7%. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Many finance companies have started to come ahead and participate in ESG investing for the past couple of years. In February 2021, Affiliated Managers Group, Inc. (AMG - Free Report) announced a deal with Boston Common Asset Management, LLC.

In November 2020, Moody's Corporation (MCO - Free Report) acquired a minority stake in MioTech, as part of its efforts to offer innovative ESG and know your customer solutions to the financial markets of China. Also, in 2019, Moody’s acquired a majority stake in Vigeo Eiris, a global leader in ESG research, data and assessments.

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