M&G has acquired a majority stake in impact investors responsAbility Investments as part of a wider plan to grow its sustainable investment capabilities.
Headquartered in Zurich, responsAbility is said to be a pioneer in the impact space, having invested over $11bn in private assets across emerging markets since 2003, when it was founded.
Recently the firm, which has around $3.7bn in assts under management, has focused on investing in companies that have their business models "tied to" the UN's Sustainable Development Goals.
M&G has agreed to acquire approximately 90% of the issued share capital of responsAbility, and said it expects to acquire the remaining 10% in due course. It will not be disclosing the cost of the transaction.
John Foley (pictured), chief executive of M&G, said: "This acquisition strengthens M&G's position in the rapidly growing market for sustainable investments, especially in the exciting area of emerging markets. It also accelerates the growth of our private assets franchise and augments our European institutional distribution."
The acquisition will also boost M&G's international presence.
On completion of the deal, responsAbility's 200 employees will join M&G, but the business will remain headquartered in Zurich and continue under the current management of its existing team, led by chief executive Rochus Mommartz.
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."
M&G's chief investment officer Jack Daniels added: "There is strong and growing demand for impact and sustainable investment products from our clients. The combination of responsAbility's specialist capabilities in this area and our scale, investment breadth and global distribution reach represents a very powerful proposition."
