Edinburgh-based pensions and insurance firm Standard Life has confirmed it is in talks to buy rival fund manager Ignis Asset Management for £400m.
In a statement Standard Life confirmed that it is “in exclusive and advanced discussions with Phoenix Group Holdings regarding a potential acquisition of Ignis Asset Management”.
It added: “Discussions are on-going and there can be no certainty that any transaction will be agreed,” and a further announcement will be made “if and when appropriate”.
Ignis has £67bn of assets under management and is currently owned by Phoenix Group, a life assurance company.
Buying the business would increase the assets under management of Standard Life’s investment business to just over £250bn and comes amid a wave of consolidation in the fund management industry.
In terms of UK real estate under management, Standard Life is ranked third after Aviva and M&G, with UK AUM of £12.1bn as at June 2013, according to Property Funds Research.
Ignis Real Estate currently manages around £2.6bn in direct property and a further £4m in oversight assets.
Its flagship funds include the £1bn FTSE 250-listed UK Commercial Property Trust and the £1bn open-ended authorised unit trust, Ignis UK Property Fund.
The real estate team led by managing director Gary Hutcheson also manages a number of segregated mandates.
In 2010, the real estate division was established as a separate business unit within Ignis Asset Management.
The move follows fellow Scottish giant Aberdeen Asset Management completing a £660m deal to buy Scottish Widows Investment Partnership from Lloyds Banking Group.
bridget.o’connell@estatesgazette.com
