SocGen, AllianceBernstein launch their cash equities JV

Alliancebernstein Holding LP

02/04/2024 13:19

PARIS, April 2 (Reuters) - Societe Generale  SOGN.PA ,
France's third-biggest listed bank, and U.S. asset manager
AllianceBernstein  AB  officially launched their joint venture
in the cash equities and equity research businesses, the two
companies said on Tuesday. 
    
WHY IT'S IMPORTANT
    The move, initiated by SocGen's CEO Slawomir Krupa shortly
before he took the reins of the French bank, is part of the
company's efforts to keep up with bigger competitors such as BNP
Paribas  BNPP.PA  in France and leading Wall Street banks
Goldman Sachs  GS.N  and JP Morgan  JPM.N . 
        
CONTEXT   
    The lender is hoping the joint venture will help it gain
more clients, notably in the realm of initial public offerings
(IPOs), and expand beyond its core markets in Europe.
    It follows French rival BNP Paribas, which expanded its
equity research house Exane in the United States after the euro
zone's biggest lender took it over in 2021.
    
KEY QUOTES
    "This joint venture illustrates Societe Generale's
capability to develop innovative pathways to further expand our
client offering as we increase our value proposition for the 
benefit of our investor and issuer clients, leverage synergies
within our Group, and grow our revenues sustainably,” Krupa
said.
    
   "Through this joint venture,  Bernstein can continue to build
out a cash equities and research business that seeks to set the
standard for delivering global investment expertise and an even
stronger set of products and services for global clients,"
AllianceBernstein CEO Seth Bernstein said. 
    
THE DETAILS
    Named Bernstein, the venture employs more than 750 people
and has two separate legal entities, one headquartered in New
York for the American region and the other in London for the
European and Asian regions, they said. Robert van Brugge, who
previously headed AllianceBernstein's research unit, is
appointed CEO of Bernstein, while Stephane Loiseau, who led
SocGen's cash equities business, becomes his deputy. 
    
    

 (Reporting by Mathieu Rosemain. Editing by Anousha Sakoui and
Chizu Nomiyama)
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