M&G has acquired a 90% stake in Zurich-based impact investor Responsability in a move to increase its focus on emerging market impact investing.
The deal is subject to regulatory approval and M&G expects to acquire the remaining 10% of the business in due course.
John Foley (pictured), CEO 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.”
Responsability, which was formed in 2003 and has around $3.7bn (£2.8bn) assets under management, will remain headquartered in Zurich and retain its branding, with its 200 employees joining M&G. It will continue to be led by CEO Rochus Mommartz.
Mommart said: “We are excited to join forces with M&G, as this will bring our vision for impact investing to the next level. 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.”
Natasha Turner is deputy editor of Portfolio Adviser‘s sister brand ESG Clarity
