First Eagle Investments, the Genstar Capital-backed asset manager, is preparing to embark on an aggressive acquisition strategy as it sets its sights on reaching $500bn in AUM within five years, according to a report by Bloomberg.
The New York-based firm, which currently oversees approximately $152bn, plans to complete up to four acquisitions annually over the period, according to CEO Mehdi Mahmud. Speaking in a recent interview, Mahmud said the strategy will focus on expanding into high-growth areas including emerging markets, secondaries, and real estate.
The move comes amid a broader industry shift, as active asset managers face mounting pressure from fee compression and structural changes in investor behaviour. With private markets continuing to draw significant inflows, many traditional managers are pursuing acquisitions to diversify and bolster their offerings in higher-margin areas.
Founded in 1864, First Eagle currently offers strategies spanning equities, alternative credit, and real assets. Its flagship First Eagle Global Fund accounts for roughly one-third of total AUM.
Mahmud attributed the firm’s acquisition appetite to three consecutive years of net inflows and noted that discussions are already underway with several potential targets. First Eagle has signed multiple NDAs in recent months and is moving closer to announcing its next deal, he added.
Mahmud took the helm in 2016 following a majority investment by Blackstone and Corsair Capital. Genstar Capital announced its agreement to acquire First Eagle earlier this year, with the transaction expected to close in H2 2025.
