The latest mergers, acquisitions and other corporate actions in the wealth management sector.

M&G
M&G Real Estate has acquired a 65 per cent stake in BauMont Real Estate Capital Limited (BauMont) – a European real estate fund manager specialising in value-add investment strategies in Western Europe. 

Established in 2017, BauMont’s 18-strong team is led from Paris and London with €1.5 billion ($1.63 billion) of assets under management and a management team with an investment track record of more than 20 years in European value add real estate. 

The acquisition is part of M&G’s strategy to selectively add investment capabilities in areas where active management has the potential to deliver alpha to clients over medium to long-term investment horizons.  

BauMont will join forces with M&G’s £40 billion (£52 billion) nine global real estate business, enabling M&G to expand its client proposition beyond its established core commercial, residential and debt strategies – and the ability to invest throughout the full property cycle, unlocking potential returns through active management. In turn, BauMont will benefit from M&G’s significant pan-European real estate platform, alongside its global distribution capabilities which 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 policyholders – is investing €200 million in BauMont’s latest fund and is seeking to secure higher returning opportunities in European value-add property in the UK and France for its wider £13 billion real estate allocation.  

Investor intention surveys have shown that European and Asian investors see the market potential of value-add real estate strategies, especially at this point in the cycle. As urbanisation and economic growth continue to drive demand for high-quality real estate, value-add is poised to play a crucial role in the real estate allocations of global institutional investors.  

“European real estate markets are adjusting to the higher rate environment and are entering a new cycle of growth where demand is focused on a limited supply of high quality assets. Value-add strategies can take advantage of re-set entry pricing, whilst actively repositioning assets to meet the needs of modern occupiers,” Robert Balick, managing partner at BauMont, said. 

M&G Real Estate was advised by CBRE Investment Banking.