MetLife Arm MIM Secures $1.2B for 2nd Private Equity Fund

MetLife, Inc.'s MET institutional asset management arm, MetLife Investment Management ("MIM"), recently launched its second private equity fund, MetLife Investment Private Equity Partners II, securing around $1.2 billion in commitments. This new fund, aimed at institutional clients, includes a portfolio of about $860 million in private equity and co-investment interests. Combined with funded and unfunded commitments, the total reaches $975 million.

The transaction was anchored by Lexington Partners L.P., the lead investor in the project. MIM also plans to utilize $250 million on new private equity opportunities. The successful closing of this fund highlights MIM's expanding capabilities and leadership in private markets. This strategic move follows the strong performance of MetLife's private equity investments, which, at first quarter-end, held $14.3 billion in assets.

The private equity team of MIM alone has invested more than $20 billion in alternative investments in the 2010-2023 period. The deal was advised by Evercore, and it further underscores MIM's commitment to offer tailored investment solutions to institutional investors around the globe. It had $593.7 billion in assets under management as of the first quarter-end.

This move will likely expand MIM's private equity platform and attract more institutional investors, boosting MetLife's assets under management and overall financial growth. The overall resilience of the economy offers a stable backdrop for launching new investment vehicles.

Investors are seeking diversification and strong returns in private equity, maintaining high demand for such investments among institutional investors. Given the strong long-term performance of MIM's private equity investments, this seems like an opportune moment to leverage its track record.

Price Performance

MetLife's shares have gained 20.9% in the past year compared with the 21.6% growth of the industry it belongs to.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

MetLife currently has a Zacks Rank #3 (Hold).

Investors interested in the broader Finance space may look at some better-ranked players like Root, Inc. ROOT, Brown & Brown, Inc. BRO and EverQuote, Inc. EVER. While Root currently sports a Zacks Rank #1 (Strong Buy), Brown & Brown and EverQuote carry a Zacks Rank #2 (Buy) each.

The consensus mark for ROOT's current-year earnings indicates a 60.6% year-over-year improvement. It beat earnings estimates in all the past four quarters, with an average surprise of 34.1%. Furthermore, the consensus estimate for Root's 2024 revenues suggests 125.3% year-over-year growth.

The Zacks Consensus Estimate for Brown & Brown's current-year earnings is pegged at $3.61 per share, which indicates 28.5% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past 60 days. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.9%.

The consensus mark for EverQuote's current-year earnings indicates a 103.3% year-over-year improvement. It beat earnings estimates in all the past four quarters, with an average surprise of 65.2%. Furthermore, the consensus estimate for EVER's 2024 revenues suggests 33.9% year-over-year growth.

To read this article on Zacks.com click here.