M&G shares jumped on Friday after the asset manager announced a strategic partnership with Dai-ichi Life, a Japanese life insurance company with 67.5 trillion yen (£345 billion) in total assets.
M&G has forged an ‘ambitious’ strategic alliance with Japan’s Dai-ichi Life Holdings that will accelerate its European private markets expansion whilst opening doors to lucrative Asian markets.
The partnership positions M&G as Dai-ichi Life HD’s preferred asset management partner in Europe and is expected to generate at least $6 billion in new business flows for the British firm over the next five years. Of this, at least $3 billion will flow into M&G’s market-leading high-alpha strategies across public and private markets.
The deal underscores M&G’s international growth strategy, providing access to Japanese and broader Asian distribution channels through one of the region’s largest insurers.
Dai-ichi Life HD manages substantial assets and the partnership will see M&G support the Japanese firm’s European investment requirements for both its own balance sheet and customer portfolios.
As part of the arrangement, Dai-ichi Life HD will acquire approximately 15% of M&G’s shares through on-market purchases, demonstrating strong confidence in the British firm’s growth prospects. The Japanese insurer will gain board representation and the companies will collaborate on product development and distribution.
Half of the projected $6 billion in new flows will come directly from Dai-ichi Life HD’s balance sheet on an evergreen basis, with the remainder generated through joint development opportunities and product distribution initiatives.
“The strategic partnership with Dai-ichi Life Holdings and the associated c.15% investment is recognition of M&G’s strengths and clear confidence in our leadership, strategy and long-term prospects,” said Andrea Rossi, Group CEO of M&G.
“It brings together two highly complementary international businesses with shared growth ambitions who aim to deliver excellent client service and sustainable shareholder returns.”
The partnership also opens potential for M&G to tap into Japan’s substantial retail market, with Dai-ichi Life HD considering distributing M&G products across Japan and Asia. Both firms will explore co-investment opportunities in new asset management capabilities aligned with their respective growth priorities.
Today’s 6% gain in M&G shares extends their year-to-date rally to 20% and takes the share price to the highest level since early 2024. And it still has a yield of 8%.