New York-based insurer MetLife has agreed to acquire Logan Circle Partners, the traditional fixed income asset management arm of Fortress Investment Group, in a cash deal worth around $250m.

Logan Circle, based in Pennsylvania, offers investment solutions to institutional clients across a broad spectrum of fixed income strategies. The firm managed over $33bn in assets as at 31 March 2017, and has over 100 institutional clients.

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The takeover would boost total assets under management of MetLife’s Investment Management business (MIM) to $560bn, of which over $140bn would be managed on behalf of third parties.

The deal is expected to be wrapped up in the third quarter of 2017, subject to regulatory approvals.

MetLife chairman, president and CEO Steven Kandarian said: “This transaction is directly aligned with our enterprise strategy to deliver value by focusing on businesses with strong risk-adjusted internal rates of returns, low capital intensity and sustainable cash flows.”

MetLife said that the deal will not impact its $3bn share buyback program that is anticipated to be completed by the end of 2017.

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MetLife executive vice president and CIO Steven Goulart added: “Joining Logan Circle Partners with MetLife’s Investment Management business will enable us to offer our domestic and international clients a broader set of investment solutions and will significantly enhance our reach in the consultant distribution channel. We will also benefit from a significant increase in scale by combining Logan Circle Partners with our fixed income platform.”