M&G has acquired emerging market impact investor Responsability Investments
The firm has acquired 90 per cent of the issued share capital of Responsability, a Zurich-based investor focussed on private debt and equity, and intends to acquire the remaining 10 per cent in due course.
The firm, which was founded in 2003, has $3.7bn (£2.76bn) of assets under management and its 200 employees will join M&G on completion of the deal, which is subject to regulatory approval.
John Foley, chief executive of M&G, said the acquisition strengthened M&G’s position in the “rapidly growing” market for sustainable investments, especially in the “exciting” area of emerging markets.
He added: “It also accelerates the growth of our private assets franchise and augments our European institutional distribution."
Responsability will retain its brand, and its chief executive Rochus Mommartz will remain in his role alongside the existing management team.
Mommartz said: “M&G's financial strength, distribution network and its strong commitment to sustainability will accelerate our endeavours to meet the massive unmet demand in developing countries and the needs for climate finance.
“Together we can achieve an even more meaningful contribution to a sustainable world."
Jack Daniels, chief investment officer at M&G, said the acquisition would help accelerate the firm’s ambition to “place sustainability at the heart” of its investment process, and expanded its international operations.
“There is strong and growing demand for impact and sustainable investment products from our clients.”
Shareholders in M&G are due this year to approve its climate transition report through a ‘say on climate’ resolution at its AGM.
The firm announced the move last year, saying it would provide investors with details of its roadmap to meeting net zero emissions by 2030 ahead of the meeting.