State Street (STT) shares jumped Friday afternoon following a report that the institutional investment group is exploring options for its asset management business, including a merger with a competitor.
The Boston firm has been working with an adviser to review strategic options for the State Street Global Advisors asset management business, sources told Bloomberg.
State Street has kicked the tires on combining Global Advisors with the asset-management arms of rivals including Invesco and UBS Group, (UBS) anonymous sources told Bloomberg.
State Street shares rose 1.7% at last check to $72.97.
Invesco was a logical partner since activist investor Nelson Peltz disclosed his firm's 9.9% stake in the Atlanta firm. Peltz has said in the past that investment firms need to add scale to compete with industry leader BlackRock. (BLK)
Those discussions did not lead to a deal, but the company continues to look into potential partners for its asset management arm.
State Street Global Advisors has more than $3 trillion under management, has dozens of mutual funds and was a pioneer in index trading, according to Bloomberg.
The move could be part of the company's push into digital assets.
On Thursday, State Street participated in a funding round for cryptocurrency software and data provider Lukka. The company raised $15 million in the round. Lukka Chief Executive Robert Materazzi said that this is "the scaling phase for us."
"State Street is pleased to partner with Lukka as we progress our broader digital asset strategy,” said Jen Tribush, global head of alternatives product for State Street.
“We are continually looking for opportunities to evolve our business and develop solutions based on our clients’ needs, and found that Lukka brings an institutional mindset to their technology solutions that can serve as a conduit for crypto and traditional assets.”