US investment management firm BlackRock is buying Swiss Re's European private equity and infrastructure fund of funds franchise, it said.
BlackRock said the terms of the all-cash deal, which also includes a strategic alternative investments deal with the world's second-biggest reinsurer, were not being disclosed and it expected the deal to be completed by the end of the third quarter.
BlackRock will integrate Swiss Re Private Equity Partners, which had $7.5bn in total commitments at 31 May, with its own private equity fund of funds group - Blackrock Private Equity Partners.
It said the deal should be neutral to modestly accretive to its 2012 earnings.
Swiss Re said in a separate statement that it would continue to hold the underlying investments in SRPEP and plans further investments in this asset class mainly through this platform.
BRPEP head Russell Steenberg will lead the combined unit, while SRPEP chief executive Christian Hinze will join BlackRock as deputy head of the combined business.
City A.M. Reporter