- Man Global Private Markets will form the firm’s private markets offering and provides clients with access to longer term investments with a complementary risk reward profile to its current product suite
- Aalto will form the real assets platform of Man GPM
- Aalto specialises in the management of real estate equity and debt strategies
- The Aalto management team will continue under the leadership of the company’s founders. In addition, Mr Barman and Mr Syrjänen will be appointed Co-Heads of Real Assets within Man GPM
Man Group has announced that it has entered into an agreement to acquire the entire issued share capital of Aalto Invest Holding and launched Man Global Private Markets (“Man GPM”), forming the firm’s private markets offering, which provides clients with access to longer term investments with a complementary risk reward profile to its current product suite.
Aalto is a US and Europe-based real asset focused investment manager with $1.7 billion of funds under management as of 30 September 2016. Aalto will form the real assets platform of Man GPM. Founded in 2010 by Mikko Syrjänen and Petteri Barman, Aalto specialises in the management of real estate equity and debt strategies including direct investments in single family homes in the US and lending to commercial and residential real estate in Europe and the US. Aalto has a strong track record across its differentiated product range, and serves a client base of predominantly large institutional investors.
The Company, which is wholly-owned by its founders and current and former senior staff members, has demonstrated a compelling growth trajectory having grown fourfold over the last four years. Aalto has 33 employees and is headquartered in London, with offices in the US and Switzerland. The Acquisition is expected to complete in January 2017, subject to regulatory approvals and other customary conditions.
Man Group believes the acquisition provides it with a core component for the long term expansion into private markets strategies; provides the clients with access to a range of strongly performing, differentiated real assets strategies; And it further expands Man Group’s presence in the US.
The transaction is expected to be EPS accretive from 2017 onwards. The total regulatory capital usage associated with the acquisition is expected to be approximately $75 million.
Launch of Man GPM
Man GPM will over time develop strategies across private markets such as real estate, credit, and infrastructure. On completion of the acquisition, Aalto will form a central component of Man GPM, providing a core platform upon which the firm can develop this new offering for clients.
The Aalto management team will continue under the leadership of the company’s founders. In addition, Mr Barman and Mr Syrjänen will be appointed Co-Heads of Real Assets within Man GPM, taking on a broader role in the strategic development of Man GPM’s offering in real assets. No change will be made to Aalto's investment process as a result of the Acquisition and investment independence will be maintained. Mr Barman and Mr Syrjänen will report to Jonathan Sorrell, President of Man Group, and will join Man Group’s Executive Committee.