Activist investment firm Trian Fund Management LP has taken a 9.9% stake each in asset management firms Invesco Ltd and Janus Henderson Group (NYSE:JHG) Plc, totaling about $900 million, people familiar with the matter said.
Trian, founded by Nelson Peltz, Ed Garden and Peter May, has expertise in pushing for better comes back at asset management organizations at a right time when lots of the smaller players are struggling to stay relevant with giants like Vanguard and BlackRock (NYSE:BLK) controlling the bulk associated with industry’s assets.
The Wall Street Journal first reported the stakes and said they were funded with capital from a portfolio that is long-term Trian has built to help facilitate consolidation in the asset management industry.
Representatives for Invesco and Janus Henderson said each company was committed to value that is delivering shareholders.
A Janus Henderson spokesman said the company was informed about the Trian stake on Thursday and so it continues to “make significant progress to increase profitability, drive organic development, and identify and deliver cost savings.”
An Invesco spokeswoman said: “We continuously evaluate opportunities to further strengthen our ability to meet client needs and enhance long-term shareholder value.”
Trian could not be reached for comment.
The asset management industry has been shaped by a wave that is recent of as investors choose to place money into cheaper index funds instead of higher priced actively handled portfolios.
Early in the day this year, Franklin Resources (NYSE:BEN) , known for its Franklin Income Fund, purchased rival Legg Mason (NYSE:LM), where Trian had invested for the full time that is second early 2019. Activist investment firm Trian Fund Management LP.
Trian often wins board seats at its target companies and had seats on the Legg Mason board. It has previously owned stakes in Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT) and recently announced a stake in cable giant Comcast Corp (NASDAQ:CMCSA), saying its stock was undervalued.