Investment Firm Janus Henderson Faces Pressure Over Competing Buyout Offers

Customers and employees at investment management company Janus Henderson are pushing back against a takeover attempt by Victory Capital. They're advocating for a competing offer from Nelson Peltz's Trian and General Catalyst, even though it's worth less money.

Investment management firm Janus Henderson is facing internal pressure from both clients and staff members who want the company to turn down a takeover attempt by Victory Capital, according to a Wednesday report from the Wall Street Journal.

Instead, these stakeholders are backing a competing proposal from Nelson Peltz’s Trian partnership with venture capital firm General Catalyst, despite that offer carrying a lower price tag.

The battle over the $493 billion asset management company highlights the continuing trend of mergers and acquisitions in the financial industry, as companies seek to expand their global reach and draw more investor dollars.

Victory Capital enhanced its $8.6 billion offer combining cash and stock on Tuesday, intensifying its campaign to block the deal led by Peltz.

According to the Wall Street Journal’s sources, major clients have voiced concerns to Janus leadership about Victory’s proposed changes and possible budget reductions. These worried customers include high-ranking executives from the wealth management divisions at both Morgan Stanley and Citigroup.

While Janus stated its board will examine Victory’s updated proposal, the company maintains its recommendation that shareholders support the Trian-led agreement during the scheduled April voting session. This deal was originally struck in December.

Reuters reached out to all companies involved but did not receive immediate responses for comment.

The Wall Street Journal also reported that some clients warned Janus that proceeding with Victory’s deal might trigger a departure of key portfolio managers. Additionally, a coalition of senior managers has reportedly threatened to quit if the company moves forward with that particular sale.

Victory Capital told the Wall Street Journal it hasn’t yet revealed specifics about the merged entity, including strategies for keeping clients and staff members. Meanwhile, Janus indicated that customer reactions have created “serious concerns” about obtaining the necessary approvals.