Man Group has also agreed to acquire Aalto Invest Holding, a US and Europe-based real asset focused investment manager, to support the launch of its first private markets offering known as Man Global Private Markets (Man GPM).
Man GPM will develop strategies across private markets including real estate, credit, and infrastructure.
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Aalto, which managed $1.7bn in funds as of 30 September 2016, will form the real assets platform of Man GPM.
The acquisition will not impact Aalto's investment process and investment independence, Man said.
Man Group CEO Luke Ellis said: “We are delighted to announce the acquisition of Aalto, which will be instrumental in the development of Man Global Private Markets, our new private markets capability. In line with our strategy to continue to diversify the firm and our offering for clients, this private markets capability is complementary to our broad offering in liquid strategies.
“As Co-Heads of Real Assets, Petteri and Mikko will work with Jonathan Sorrell to help to grow this area of the business, which will offer investors exposure to longer duration capital products and benefit from Man Group’s world class infrastructure, broad investment expertise and global resources.”
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By GlobalDataThe transaction is expected to close in January 2017, subject to regulatory approval.
Aalto, set up in 2010 by Mikko Syrjanen and Petteri Barman, focuses on the management of real estate equity and debt strategies such as direct investments in single family homes in the US and lending to commercial and residential real estate in Europe and the US.
The company is based in London, and also offices in the US and Switzerland.
Barman and Syrjanen will become co-heads of real assets within Man GPM and will join Man Group’s executive committee.
Aalto co-founder and CEO Mikko Syrjanen said: “Since its foundation, Aalto has operated a client-focused business model over multiple market cycles. We are now at the point in our evolution where the additional infrastructure and diverse investment expertise available at Man Group, as part of Man GPM, enhances our business and enables us to create significant value for existing and future clients.”
