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Prudential Financial has recruited a top Morgan Stanley executive to take over its $1.4tn asset management arm as it seeks to expand the division’s international reach and offerings in alternative assets.
Jacques Chappuis will join as PGIM’s chief executive in May, replacing David Hunt, who is retiring after a 13-year stint that saw assets under management double and the firm become a top-five player in US active fixed income and real estate investing.
Chappuis, who also previously worked at Citigroup and Carlyle, has been the co-head of Morgan Stanley Investment Management since January.
Prudential wants to double PGIM’s contribution to the group’s earnings from 12 to 24 per cent over the next seven years, said Andy Sullivan, Prudential’s head of international and investment management, who led the search for Hunt’s replacement.
PGIM, currently ranked 15th in the world by AUM, hopes to capitalise on the growing trend for large clients to do more business with fewer providers. It is also seeking to bulk up further in private assets, which carry higher fees, and win mandates for multi-asset solutions from other insurers as well as pension funds and endowments.
“We are at an inflection point both as an industry and for us as a business,” Sullivan said. “This was a very difficult search. We needed someone who had deep experience across asset classes.”
Chappuis “is a humble, decisive and determined leader,” Sullivan said.
PGIM’s alternatives business rose by more than 50 per cent to $336bn under Hunt’s leadership. The group made several small acquisitions and was looking for others that would expand its global reach and give it more heft in areas such as infrastructure equity, Sullivan said.
“As the industry is consolidating and the big are getting bigger, we want to be sure we are on that path,” Sullivan said.
Chappuis is currently on gardening leave. After his arrival in May, Hunt will stay on as PGIM chair until July to ensure a smooth transition.
Morgan Stanley told staff late last month that Chappuis was stepping down, leaving Ben Huneke as the sole head of investment management. They had been running the division together since January, when the elevation of Ted Pick to chief executive was accompanied by a broader reorganisation.
“I’m proud to become PGIM’s next president and CEO, leading an incredible team through its next chapter of growth,” Chappuis said in a statement. “I look forward to building upon the firm’s successes.”
