Generali and the owner of France’s Natixis Investment Managers agreed to jointly create a European asset manager overlooking $1.979 trillion.

With €1.9tn in AUM, the joint venture would allow the pair to expand globally and speed up a push into private markets.

Assicurazioni Generali S.p.A. (Generali) and BPCE announced on January 21 that they have signed a non-binding Memorandum of Understanding (MoU) to create a joint venture between their respective asset management operations Generali Investments Holding (GIH) and Natixis Investment Managers (Natixis IM).

The investment committee of Generali has given its green light to the Italian insurer's planned asset management deal with Natixis Investment Managers, two sources close to the matter said on Sunday.

The combined entity will have equal ownership, with each party holding 50% and sharing governance and control.

Natixis Investment Managers is set to merge with the asset management arm of Italian insurer Generali, creating the largest European asset manager by revenue.

PRESS RELEASE BPCE and Generali to Create the Largest Asset Manager in Europe by revenues and a Major Player Worldwide Milan & Paris, 2125 – Assicurazioni Generali S.p.A. (“Generali”) and BPCE today announce that they have signed a non-binding Memorandum of Understanding (“MoU”) to create a joint venture between their respective asset management operations Generali Investments Holding (“GIH”)1 and Natixis Investment Managers (“Natixis IM”).

Italy's Generali and France's BPCE said on Tuesday they had taken the first step towards creating Europe's largest asset manager by revenue as the industry bets on size to protect profit margins. The