AFRICA – M&G, an international savings and investments business, has agreed to acquire a majority stake in responsAbility Investments, in impact investing firm focused on private debt and private equity across emerging markets.
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. The acquisition is however subject to regulatory approval.
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.
“This acquisition strengthens M&G’s position in the rapidly growing market for sustainable investments, especially in the exciting area of emerging markets,” John Foley (pictured), CEO of M&G, said.
“It also accelerates the growth of our private assets franchise and augments our European institutional distribution.”
Headquartered in Zurich, responsAbility has invested more than US$11 billion in private assets across emerging markets since it was founded in 2003.
With US$3.7 billion in AUM, responsAbility has more recently focused on companies with business models tied to the UN’s Sustainable Development Goals.
“responsAbility brings leading capabilities in impact investment to M&G, which will help us accelerate our ambition to place sustainability at the heart of our investment process, and further expands M&G’s international operations, particularly with respect to asset sourcing and origination,” Jack Daniels, CIO of M&G, said.
“There is strong and growing demand for impact and sustainable investment products from our clients. The combination of responsAbility’s specialist capabilities in this area and our scale, investment breadth and global distribution reach represents a very powerful proposition.”
The business will remain headquartered in Zurich and continue to serve its clients and portfolio companies across more than 70 emerging markets from its eight offices. responsAbility’s 200 employees will join M&G on completion of the deal.
“We are excited to join forces with M&G, as this will bring our vision for impact investing to the next level,” Rochus Mommartz, CEO of responsAbility, said.
“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.”
Given responsAbility’s standing as a renowned impact investor with a strong performance track record, responsAbility will retain its brand identity.
“By joining forces with M&G, responsAbility is even better equipped to make a meaningful contribution to sustainable development, the main reason why responsAbility was established in 2003,” Reto Schnarwiler, Chairman of responsAbility, said.