Australian investment management firm Perpetual has agreed to acquire 100% of Boston-based ESG investment firm Trillium Asset Management for $36m along with an earnout.

The deal awaits regulatory nod. Trillium’s investment process and team will remain unchanged upon deal closure this June.

The company will also retain its brand following the takeover.

Perpetual will distribute Trillium’s offerings to Australian investors and also launch a US-based distribution team to speed up Trillium’s growth.

Moreover, plans are on to increase the reach of Trillium to new geographies in the Asia Pacific, Middle East, and Europe.

Perpetual CEO and managing director Rob Adams said: “In the US, total assets committed to ESG have grown 75% from 2013 to 2019 and in Australia, ESG was the fastest growing category, rising 53% over the year to June 2019.

“ESG investing is fast-becoming mainstream and Trillium has an unmatched history of investing via a fully integrated ESG approach, while also delivering superior investment performance.

“We are pleased to have found a partner with such a long-standing pedigree in ESG. Importantly, the acquisition is underpinned by strong cultural alignment, with Perpetual itself having an 18-year history in ethical investing. This partnership will enable us to better meet the evolving expectations of our clients, shareholders, employees and the broader community.”

Established in 1982, Trillium includes US equity and fixed income offerings in its products suite.

The firm had $3.8bn in funds under management at the end of December 2019.