Manulife Investment Management (Manulife IM) is set to buy a significant minority stake in Hong Kong-based real estate private equity investment manager ARCH Capital.
Financial terms of the proposed deal were not disclosed. The deal is subject to regulatory approval and other customary conditions.
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By GlobalDataFounded in 2006, ARCH Capital invests in office, retail, residential, and mixed-use segments across Asia-Pacific, including in Australia, Southeast Asia and Greater China.
The firm has $2.3bn in assets under management (AUM) across co-mingled funds, separate accounts and joint ventures.
As part of the strategic partnership, Manulife IM will collaborate with ARCHCapital on future products and investment strategies.
The two companies also plan to offer investors a range of products across different “strategies.
The partnership’s combined AUM is said to exceed $5bn across 12 Asian markets.
ARCH Capital founder and CEO Richard Yue said: “This partnership would give us enhanced strengths and geographical reach through a powerful combination of Manulife Investment Management’s global institutional foundation with ARCH Capital’s local presence.”
Manulife IM’s real estate team specialises in developing and managing commercial real estate worldwide on behalf of its clients.
These include the firm’s general account, comprising office, multi-family, industrial, and retail across different regions.
Manulife IM private markets global head of real assets Christoph Schumacher said: “This partnership further demonstrates our commitment to the fast-growing Asia region and will allow us to add even more value to our investors with broadened deal access, deepened investment management capabilities, and enhanced operational support.”
Last year, Manulife IM expanded its private markets capabilities to Europe following the authorisation of its Irish entity as an Alternative Investment Fund Manager.
In 2020, the firm acquired a minority stake in Hong Kong-based private equity infrastructure investment managerAlbamen Capital Partners.