US based investment management giant Principal Financial Group is to take over London-based Internos Global Investors in an agreed cooperation, the two firms have announced. No financial details were given.
In a release, the two groups said Principal Global Investors, the asset management arm of Principal, will assume ownership of the European real estate investment firm, subject to regulatory approval. "As part of PGI’s multi-boutique operating model, Internos will retain its investment and management independence, while gaining access to the resources and scale of a major financial institution," the statement said.
Based in Des Moines, Iowa, the Principal Financial Group has $496bn in total assets under management and serves some 19.2m people and institutions with a range of financial products and services including retirement, asset management and insurance. Tracing its roots back to the 1870s, it has offices in 18 countries globally. Internos, founded in 2008 and managed by Jos Short and Andrew Thornton - two executives very well-known in European real estate circles - runs property fund and asset management amounting to some €2.75bn of assets across Europe.
"As Principal grows its investment offerings and operations in Europe, we will continue to strategically invest in capabilities to deliver a greater range of solutions to our clients," said Pat Halter, chief operating officer of PGI in the statement. "In addition to gaining a pan-European real estate platform, Internos has local expertise and infrastructure in key European cities to grow our client base on the continent."
Internos CEO Thornton added: "As part of Principal, we will be in an even stronger position to offer attractive opportunities to our clients and investor partners, combining the resources of a leading global investment firm with the small-business agility and deep European market knowledge of Internos."
The firms said the investment teams of Internos will remain unchanged, and the senior management team will continue to guide the direction of the firm. Once the deal has received regulatory approval, Internos will become Principal Real Estate Investors Europe.