PineBridge Investments has agreed to buy British private equity real estate fund manager Benson Elliot Capital Management for an undisclosed amount.
The purchase, which is pending regulatory approvals, is said to enable PineBridge strengthen its client offerings in alternatives.
Through the deal, the firm aims to incorporate new investment vehicles to its private funds, structured capital as well as private credit businesses.
PineBridge CEO Greg Ehret said: “Real estate is a strategically important asset class for institutional investors, such as pension funds and insurance companies, who are looking to meet their long-term investment objectives, especially during a period of low real interest rates.
“Benson Elliot’s industry-leading expertise in European real estate will complement and diversify our firm’s investment offering allowing us to best serve our global client base.”
PineBridge will absorb Benson Elliot’s 40-strong workforce after the deal closes.
Set up in 2005, Benson Elliot has more than US$3.5 billion of managed equity.
Its portfolio includes office, retail, hotel and residential assets across the UK, Germany, France, Spain, Italy, Belgium and Poland.
The firm has so far unveiled four European funds, the most recent being the Benson Elliot Real Estate Partners V.
Benson Elliot executive chairman and CIO Marc Mogull said: “This partnership will enable us to put in place the infrastructure for future growth, to continue attracting and developing the best talent in the industry, and to sustain our track record of best-in-class performance.
“Importantly, it ensures continuity in our existing activities, respects the unique spirit and culture we’ve developed at Benson Elliot, and offers an exciting future for the Benson Elliot team.”
Specialising in active, high-conviction investing, PineBridge oversaw $104.4bn across global asset classes at the end of June 2020.