- M&G’s With Profits Fund invests €200 million in latest fund
M&G plc today announces that its Real Estate business has acquired a majority stake in BauMont Real Estate Capital Limited (BauMont) – a leading European investment manager specialising in value-add strategies.
The acquisition underpins M&G’s strategy as it seeks to strengthen its position as a leader in European private assets through selective bolt on acquisitions.
Established in 2017, BauMont has offices in Paris and London with €1.5 billion of assets under management and a management team with an investment track record of more than 20 years. Value-add investments are different to core real estate strategies as they usually require action such as redevelopment or refurbishment to achieve higher returns.
BauMont’s 18-strong team will join forces with M&G’s £40 billion global real estate business to expand its client proposition beyond core real estate and enable investment throughout the property cycle – unlocking potential returns through active management. In turn, BauMont will benefit from M&G’s significant European real estate platform, alongside its global distribution capabilities that have been expanded in recent times to meet the growing needs of institutional investors in Europe and Asia.
Separately, M&G’s With Profits Fund – which invests and manages the long-term savings on behalf of 4.6 million UK policy holders, including 450,000 clients in the market leading PruFund – is investing €200 million in BauMont’s latest fund and is seeking to secure higher returning opportunities for its wider £13 billion real estate allocation.
Joseph Pinto, Chief Executive Officer, M&G’s Asset Management business, said: “The acquisition of a majority stake in BauMont is in line with our growth strategy in private markets where we have the ambition to become the European champion in this space. BauMont is a specialist firm with leading capabilities that can be enhanced by the strength of our wider real estate platform and distribution network. This deal is testament to our strategy of investing in teams that have the potential to deliver alpha for our clients over the long-term, building on our rich heritage and track record in investing in private markets, yet continuing to drive innovation and enhance our capabilities.”
Robert Balick, Managing Partner at BauMont, added: “Collaborating with M&G Real Estate is an exciting milestone for us as they share our commitment to excellence and innovation in real estate investing. We will be able to leverage M&G’s extensive resources and expertise to source a wider set of opportunities as we seek to deliver enhanced value to our investors.”
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