BlackRock Inc., the world's largest asset manager, announced Tuesday an agreement to acquire MGPA, a London-based private equity real estate investment manager.
The agreement was made for an undisclosed amount to expand real-estate business in the Asia-Pacific region and Europe. The deal is expected to close during the third quarter of 2013.
BlackRock, led by Chief Executive Officer Laurence D. Fink, has expanded into private equity, real estate, energy and hedge funds as investors seek to diversify beyond stock and bond funds.
MGPA employs 220 people in 13 offices in the Asia-Pacific region and Europe, including cities such as Shanghai, Kuala Lumpur and Warsaw.
"The addition of MGPA to BlackRock is an important step in the evolution of our Asia-based investment capabilities and is aligned with the growth of our Asia-Pacific franchise," Mark McCombe, BlackRock's Asia-Pacific chairman, said in a separate statement.
The MGPA's client base, meanwhile, is 42% North American, followed by 24% in Australia, 19% in Europe and 15% in the Middle East. Clients include corporate and public pension funds, superannuation funds and sovereign wealth funds, according to Pensions & Investments.
MGPA executive chairman Jim Quille says: "In BlackRock we have found an excellent asset manager to partner with who has a deep fiduciary culture, industry-leading risk management capabilities."
