New York Life Investment Management (NYLIM), the third-party global asset management business of New York Life Insurance Company, has reached an agreement to purchase IndexIQ, a provider of liquid alternative investment solutions. Terms were not disclosed.
The acquisition, expected to close in the first half of 2015, will mark New York Life's entry into the exchange-traded fund (ETF) industry. IndexIQ will be integrated into NYLIM and marketed through New York Life's MainStay Investments arm, initially adding $1.5bn to MainStay's $101bn in assets under management.
"Retail and institutional investors are increasingly attracted to ETFs because they offer a cost-effective, transparent way to access investment opportunities across asset classes around the globe," said Drew Lawton, chief executive officer, NYLIM. IndexIQ offers "the next generation of liquid alternative ETFs," and NYLIM aims "to leverage IndexIQ's capabilities to become the dominant provider of non-traditional ETF solutions to the market."
RBC Capital Markets acted as exclusive financial adviser to IndexIQ. Paul, Weiss, Rifkind, Wharton & Garrison acted as legal adviser to IndexIQ.
