PineBridge Investments is set to acquire private equity real estate specialist Benson Elliot Capital Management for an undisclosed fee, adding $3.5bn to the asset manager’s existing $104.4bn in assets under management.
Founded in 2005, UK-based Benson Elliot manages a portfolio comprised of office, retail, hotel and residential assets across Europe, and employs an "asset driven, value add, risk sensitive and exit focused investment strategy", according to PineBridge.
The firm has previously launched four European funds, the most recent of which, Benson Elliot Real Estate Partners V, closed in 2019 at €836m.
PineBridge said the acquisition, which is subject to regulatory approval, will expand its client offerings in alternatives, and add new capabilities and investment vehicles to its private funds, structured capital and private credit businesses.
CEO of PineBridge Greg Ehret described the acquisition as a "significant milestone" in the firm's growth and noted real estate is a "strategically important asset class for institutional investors", particularly at a time of low interest rates.
He added: "Benson Elliot's industry-leading expertise in European real estate will complement and diversify our firm's investment offering allowing us to best serve our global client base."
Executive chair and CIO of Benson Elliot Marc Mogull said the partnership will enable the firm "to put in place the infrastructure for future growth, to continue attracting and developing the best talent in the industry, and to sustain our track record of best-in-class performance".
He added: Importantly, it ensures continuity in our existing activities, respects the unique spirit and culture we've developed at Benson Elliot, and offers an exciting future for the Benson Elliot team."