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Assicurazioni Generali SpA and Natixis SA are close to a deal for a joint venture in asset management to cut costs and team up on distribution, according to people familiar with the matter.

The two firms are still finalizing details of what will be integrated into the new structure, with an agreement possible over the coming days and an announcement likely before the end of the month, the people said. Generali, which has fewer assets under management, would commit to gradually contribute more to the venture, which will be owned in equal parts by the two companies, according to the people.

The goal is to reduce expenses in administrative and support functions and team up on distribution, while investment decisions would remain with the individual fund boutiques, the people said, asking for anonymity because no announcement has been made.

Representatives for both firms declined to comment.

Bloomberg reported in December that the two companies aim set up a new structure that would combine the roughly €650 billion currently managed by the Italian insurer’s investment arm, Generali Investments Holding, with the assets overseen by Natixis Investment Managers, which stood at about $1.4 trillion at the end of September. Both firms operate a boutique model, with various affiliates running money with a degree of autonomy.

Woody Bradford, the chief executive officer of Generali’s asset manager, is expected to run the new entity, while Nicolas Namias, the CEO of Natixis parent Groupe BPCE, is likely oversee it as president. Bradford is expected to get an initial five-year contract that could be extended by another five years if certain goals are met, some of the people said.

A deal would help cut costs as the asset management industry is undergoing consolidation. BNP Paribas SA last year agreed to buy AXA SA’s fund unit, while Amundi SA has held talks with insurer Allianz SE about acquiring control of its investment arm Allianz Global Investors, Bloomberg has reported. In Italy, Banco BPM SpA is seeking to take over Anima Holding SpA.

The potential deal between Generali and Natixis has raised the attention of Italian government, which is looking at steps it could take to maintain Italian influence in the tie-up, Bloomberg reported last month. One major issue is that the Italian insurer is one of the biggest holder of Italian sovereign bonds, the people familiar with the thinking in Rome have said.

Generali Chief Executive Officer Philippe Donnet has been seeking to grow in asset management. Last year, he completed the acquisition of asset manager Conning Holdings Ltd. from a unit of Cathay Financial Holding Co.

Natixis owns a network of well-known fund boutiques, including Harris Associates and Loomis Sayles in the U.S. BPCE took Natixis private in 2021, after the investment banking unit suffered trading losses and the asset management arm saw a liquidity scare at its H2O asset management subsidiary.

Photograph: The Assicurazioni Generali headquarters in Milan, Italy; photo credit: Photo credit: Francesca Volpi/Bloomberg

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• Generali and Natixis in Early Talks for Asset Management Tie-Up, Source Says