Nelson Peltz’s Trian and VC firm General Catalyst have agreed to buy asset manager Janus Henderson for $7.4 billion, the companies said on Monday, bringing to close a more than five-year activist campaign by the billionaire’s hedge fund.
The deal highlights a broader push for asset managers to merge as they struggle to compete with cheap index funds run by firms like BlackRock and Vanguard.
Janus Henderson shareholders will receive $49 per share in cash, reflecting an 18% premium to the closing price on October 24, the last trading day before the first proposal from Trian and General Catalyst was revealed.
Shares of the company were trading up 3.4%. They have outperformed peers T. Rowe Price and AllianceBernstein this year.
Janus Henderson formed in May 2017 when Henderson Group merged with Janus Capital, in a deal that initially underwhelmed investors as the asset manager continued to face outflows and internal disputes.
Peltz joined Janus Henderson’s board in 2022 after building a significant stake. He has long advocated consolidation in the fragmented asset-management sector, where a larger asset base can translate into higher fees and margins.
Trian, which made headlines last year after an unsuccessful proxy battle for Disney board seats, is Janus Hendersons’ largest shareholder with a 20.6% stake after first investing in 2020.
After going private, current CEO Ali Dibadj will continue to lead the company. The deal is expected to close in mid-2026.
SECTOR SHAKEUP
The buyout is the latest ownership shakeup across active fund managers. In September, Wall Street heavyweight Goldman Sachs said it will invest up to $1 billion in T. Rowe, whose shares have lost half their value since 2021 amid persistent outflows.
The involvement of Silicon Valley’s General Catalyst signals the increasing significance of AI-driven cost savings in M&A strategies, as companies aim to use the nascent technology to slash middle office costs and boost margins.
“We see a tremendous opportunity to partner with Janus Henderson’s leadership team to enhance the company’s operations and customer value proposition with AI to drive growth and transform the business,” said General Catalyst CEO Hemant Taneja.
The investor group taking Janus private also includes Qatar Investment Authority and Hong Kong-based alternative investment company Sun Hung Kai & Co, underscoring the evolving role of foreign investors in U.S. money managers from passive money to direct ownership.
“Involvement of Qatar and Hong Kong brings capital and signals global distribution ambitions,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
Last month, Abu Dhabi-backed Aquarian Capital agreed to take private U.S. life insurance and annuity provider Brighthouse Financial in a $4.1 billion deal.
