Listed asset manager M&G is to acquire a majority stake in responsAbility Investments AG, an impact investor focused on private debt and private equity across emerging markets.
Headquartered in Zurich, responsAbility has invested more than $11 billion in private assets across emerging markets since it was founded in 2003. ResponsAbility has more recently focused on companies with business models tied to the UN’s Sustainable Development Goals. As at year end 2021, responsAbility had $3.7 billion of assets under management.
The acquisition is in line with M&G’s strategy to grow its sustainable investment capabilities and become a leader in impact investing. It also expands M&G’s international presence and private asset origination capabilities.
John Foley, chief executive 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.”
M&G has agreed to acquire approximately 90% of the issued share capital of responsAbility, and expects to acquire the remaining 10% ‘in due course’, with the acquisition subject to regulatory approval.
ResponsAbility’s 200 employees will join M&G on completion of the deal, though the firm will retain its branding. The business will remain headquartered in Zurich and continue to maintain its clients and portfolio companies across more than 70 emerging markets from its eight offices.
The business will also continue under the day-to-day management of its existing team, led by chief executive Rochus Mommartz.
Rochus Mommartz, chief executive of responsAbility, 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.”
