Man Group has had a busy morning – the investment firm reported increased funds under management and announced that it has bought property manager Aalto and launched a new business, Man Global Private Markets (GPM).
Shares in the company are up 14 per cent this morning.
Man Group said Aalto will form the real assets platform of Man GPM, adding: "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.
The Aalto management team will continue under the leadership of the company's founders, Mikko Syrjänen and Petteri Barman. In addition, Barman and 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.
Man Group, which recently lost chief executive Manny Roman to US rival Pimco, said no change will be made to Aalto's investment process as a result of the acquisition and investment independence will be maintained.
Barman and Syrjänen will report to Jonathan Sorrell, president of Man Group, and will join Man Group's executive committee.
"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," said Man Group chief exec Luke Ellis.
"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."
Meanwhile, Man Group's funds under management increased by six per cent during the quarter to 30 September, up to $80.7bn (£66.1bn) from $76.4bn this time last year.