Man Group acquires $1.7bn real estate manager, launches private markets unit

Man Group CEO told FN in July he would keep doing deals after succeeding Manny Roman

Man Group has acquired Aalto Invest, a $ 1.7 billion real estate manager based in Mayfair. The acquisition is expected to complete in January 2017.

Alongside the deal the firm said it was launching a new business line, Man Group Private Markets, to provide clients with “access to longer term investments with a complementary risk reward profile to our current product suite”.

Man Group’s CEO Luke Ellis, who took over the running of the firm in September, 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.”

News of the acquisition and launch of Man GPM came as the firm revealed that funds under management grew 6% in the three months to September 30 to $ 80.7 billion.

In a trading statement for the period, Man Group said it had benefited from $ 2.5 billion in positive investment performance driven by its discretionary manager Man GLG and institutional manager Numeric. Though it added this had been partially offset by a weaker showing from its computer-driven AHL strategies.

Net inflows during the quarter were $ 1.3 billion.

The figures are the first to be published since Ellis became CEO. He succeeded Manny Roman, who has moved to become chief executive of the giant bond manager Pimco.

Under Roman, Man Group greatly diversified its business model through acquisitions.

In his first interview after being promoted in July, Ellis told FN he would continue with the firm’s acquisitive strategy. He said at the time: “It is amazing how many different things pop up but we have been very rigorous about which sort of deals we want to do and we will stay that rigorous.”

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