Man Group plc has acquired Aalto Invest Holding AG and launched a new ‘private markets offering’, Man Global Private Markets, designed to offer longer term investments and complement their existing products. Man defines private markets as real estate, credit and infrastructure.
Founded in 2010 by Mikko Syrjänen and Petteri Barman, USD1.7 billion 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. Man writes that Aalto has a strong track record across its differentiated product range, and serves a client base of predominantly large institutional investors.
Man’s new private markets business, Man GPM is designed to offer its clients a broader range of investment strategies to complement their existing capabilities. The firm writes that private market strategies are run in long duration funds, providing a stable source of revenues, while continuing to diversify Man’s product offering and offering further options for growth.
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.
Commenting on the acquisition, Luke Ellis, (pictured) CEO of Man Group, says: “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. As Co-Heads of Real Assets, Petteri and Mikko will work with Jonathan Sorrell to help to grow this area of the business, which will offer investors exposure to longer duration capital products and benefit from Man Group’s world class infrastructure, broad investment expertise and global resources.”
Petteri Barman, Co-Founder and CIO of Aalto, says: “Joining Man Group is a compelling opportunity for us and our investors, as we believe that the firm is the ideal strategic partner for the next phase of Aalto’s development. The firm has a history of successfully integrating complementary businesses, while recognising and supporting their individual expertise, investment processes, and culture. We are excited to work with Man Group to further grow and enhance our business while retaining Aalto’s core purpose and independent approach to investing.”
Mikko Syrjänen, Co-Founder and CEO of Aalto, says: “We are excited to partner with Man Group, and to combine Aalto’s investment expertise and capabilities with the firm’s institutional framework and global resources. Since its foundation, Aalto has operated a client-focused business model over multiple market cycles. We are now at the point in our evolution where the additional infrastructure and diverse investment expertise available at Man Group, as part of Man GPM, enhances our business and enables us to create significant value for existing and future clients. We are delighted to be working with an organisation that will enable us to preserve our entrepreneurial culture.”
