Generali Investments and Natixis Investment Managers (Natixis IM) are set to combine forming a $2trn asset manager, with each firm to own a 50% stake in the joint venture.

According to the announcement, the parent companies of Generali and Natixis IM, Assicurazioni Generali and BPCE, have signed a “non-binding” memorandum of understanding with the deal expected to complete in early 2026, subject to regulatory approval.

The tie-up will create Europe’s largest asset manager by revenue – at $2.3bn Amundi is larger by AUM – and the world’s largest insurance investment manager by assets.

As part of the combination, Generali has committed €15bn in seed money but Natixis and Generali will retain full authority over investment decisions for their respective assets.

Ossiam, which houses $6.2bn in assets under management (AUM) across 16 ETFs, according to Trackinsight data, is an affiliate of Natixis IM.

In terms of leadership, Woody Bradford, current CEO of Generali, will become CEO of the joint entity, while Philippe Setbon, current CEO of Natixis IM, will serve as deputy CEO.

BPCE’s CEO Nicolas Namais will become chairman of the board with Assicurazioni Generali’s CEO Philippe Donnet to become vice chairman.

Philippe Donnet, Group CEO of Assicurazioni Generali, said: “The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the US to serve the constantly evolving needs of our customers.”

Nicolas Namias, CEO of BPCE, commented: “With our Vision 2030 plan launched last June, we expressed our ambition to expand in France, Europe, and beyond. It’s very exciting to kick off a project that aligns perfectly with these goals.”

The joint venture is the latest example of consolidation in Europe’s asset management industry – BNP Paribas recently agreed to acquire AXA IM for €5.1bn, for example – as providers target inorganic growth to boost scale.