Man Group completes Aalto acquisition

The investment firm will pay $232m for Aalto, a real estate debt investment firm established in 2010. Mikko Syrjänen and Petteri Barman will lead the newly established Man Global Private Markets unit.

London-based investment management firm Man Group has completed its acquisition of Aalto Invest, PDI sister title Real Estate Capital has reported.

Man announced in October that it was to buy Aalto in order to help it launch a new private markets business. As previously reported, Man Group will pay a maximum of $232 million for Aalto, with payments staggered over eight years.

Aalto, which provides senior property finance alongside direct investment, is to be integrated into a newly-formed business unit called Man Global Private Markets. The new unit will be led by Aalto founders Mikko Syrjänen and Petteri Barman.

Syrjänen and Barman, who founded Aalto in 2010, will become co-heads of real assets within Man Global Private Markets. Man said that the two will take on a leading role in the “strategic development of the unit’s offering in real assets”.

Since its launch, Aalto has invested in single-family homes in the US and residential and commercial property in Europe. Aalto hired former Royal Bank of Scotland non-core real estate head Stephen Eighteen in 2013 to drive its senior lending programme.

Man Group’s history dates back to 1783, when it was founded as a sugar cooperage and brokerage in London. Today, the alternative investment company has funds under management in the region of $80 billion. Man is listed on the London Stock Exchange.

“We are delighted to have completed the acquisition of Aalto, which is a key step in the development of Man Global Private Markets, our new investment engine for private asset classes, and in the ongoing diversification of Man Group,” said Luke Ellis, chief executive of Man Group.

“The acquisition of Aalto represents an attractive opportunity for clients, who will have access to longer term investment strategies offering a complementary risk reward profile to our current products,” Ellis added.

Aalto is headquartered in London and also has offices in the US and Switzerland. It had $1.7 billion of funds under management as at 30 September 2016.