New York Life Insurance Co. is set to buy IndexIQ as a means of advancing the company's services into the exchange-traded funds (ETF) industry. Terms of the deal remain undisclosed.
The transaction is designed to boost services related to liquid alternatives and offerings for retail investors. The acquisition of IndexIQ adds $1.5 billion in assets under management. That includes about $950 million in the target's IQ Hedge Multi-Strategy Tracker ETF (QAI), which seeks to pinpoint companies that could be targeted for acquisitions, as well as wager on individual stocks rising and falling.
Debevoise & Plimpton LLP advised New York Life on the deal with a team of partners, including William Regner, Kenneth Berman, Jeffrey Cunard, Jonathan Lewis and Byungkwon Lim.
New York Life CEO Ted Mathas has been wielding M&A to grow. Before acquiring Rye Brook, New York-based IndexIQ, the insurer sealed a $511.9 million deal in February for the fund management unit of Franco-Belgian lender Dexia SA. Before that, the life insurance provider inked a deal through wholly subsidiary Madison Square Investors LLC, for Cornerstone Capital Management in February 2013 and Marketfield Asset Management.
The deal spree is in line with expectations for the financial services sector, as consolidation is expected to continue.