Deals
Pimco and Franklin Are Filling Holes With Bite-Size M&A
- ‘Large acquisitions are very difficult,’ says Franklin’s CEO
- Fee squeeze puts emphasis on investing industry specialists
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Money managers want to get bigger. They just want to do it a bit at a time.
Firms including Pacific Investment Management Co., Prudential Financial Inc. and Franklin Resources Inc. are focusing on modest-sized acquisitions to fill holes in their product lineups or widen their customer base as they fight to keep customers from fleeing active funds. Their executives won’t rule out mega-deals, but they’re increasingly wary of the hazards that can come when two giants combine.