MetLife Investment Management (MIM), the institutional asset management practice of insurance major MetLife, has signed a definitive agreement to buy Affirmative Investment Management (AIM).

AIM is a specialist environmental, social and corporate governance (ESG) impact fixed income investment manager.

It is engaged in impact investing, verification, reporting and engagement and has $1.01bn in assets under management (AUM) as of 30 June 2022.

Through the deal, MIM aims to enhance its ESG investment and reporting capabilities to offer client solutions and long-term risk-adjusted returns.

MetLife executive vice president and chief investment officer and MIM president Steven Goulart said: “By combining AIM’s expertise with MIM’s commitment to sustainable investing, we will be even better positioned to provide comprehensive insight and counsel to clients and consultants on ESG considerations.

“MIM will maintain its fundamental investment processes, and AIM brings us additional capabilities to evaluate sustainability and risk considerations across our core competencies in public fixed income, private fixed income and real estate.”

The life insurer’s affiliate did not divulge the financial details of the deal, which is subject to receipt of regulatory approval among other customary closing conditions.

AIM co-founder Stephen Fitzgerald said: “We are pleased to be able to join a world-class institutional investment firm in MIM and continue our mission of managing high-performing portfolios that consider positive environmental and social impact.

“Upon our planned integration with MIM’s investment teams, we believe that we can deliver differentiated insights and analysis to MIM’s growing roster of global clients.”