Manulife Investment Management said it has agreed to acquire a significant minority equity position in Arch Capital, although the transaction is pending regulatory approval.
Manulife IM will be collaborating closely with Arch Capital on opportunities to become the institutional anchor for its future investment strategies, according to a media release. There will be no change to the current management of Arch Capital’s existing property private equity businesses in Asia Pacific.
“This transaction is a complement to our Asia private markets and real estate growth strategy, and an amplification of our core strengths,” Christoph Schumacher, global head of real assets of private markets at Manulife IM, said.
“This partnership…will allow us to add more value to our investors with broadened deal access, deepened investment management capabilities, and enhanced operational support,” he added.
Arch Capital has $2.3bn AUM across co-mingled funds, separate accounts and joint ventures with a diversified portfolio across office, retail, residential, and mixed-use. The firm said it can create value for investors through active and direct in-house asset management.
On a combined basis, the partnership’s total AUM exceeds $5bn across 12 markets in Asia.
Manulife’s real estate team develops and manages commercial real estate globally on behalf of its clients, including Manulife’s general account, totalling 63 million square feet of office, industrial, multi-family, and retail space strategically located across different regions out of which $2.9bn core/core-plus direct investment portfolio are in major cities in Asia.
