Global asset management firm Schroders will acquire a majority stake in Switzerland-based impact investment manager Blue Orchard.
Financial terms of the transaction are not disclosed and the acquisition is expected to complete in the second half of 2019.
BlueOrchard offers solution to retail and institutional investors across asset classes, including credit, private equity and sustainable infrastructure.
The business has around $3.5bn (£2.81bn, €3.14bn) in assets under management and operates across Europe, Asia, Africa and South America.
Peter Harrison, group chief executive of Schroders, said his company “has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard’s expertise in this area is exceptional”.
“They share our values; recognising that, through our combined contributions, we can purposefully affect positive change.
“They are a blueprint for the future of our industry.”
Schroders hopes the deal will help to serve clients who are increasingly seeking investments which have a beneficial impact on society and the environment, as well as generating positive financial returns.
It also expands the asset manager’s offering in private debt and private equity investments in emerging markets.
There will be no changes to the management team, processes or strategies that BlueOrchard manages.
Peter Fanconi will remain as chairman of the board of directors and Patrick Scheurle as chief executive of BlueOrchard.
Schroders will appoint Harrison, Georg Wunderlin (global head of private assets), and Stephen Mills (executive chairman of Schroder Adveq) to BlueOrchard’s board.
BlueOrchard’s board of directors, consisting of both BlueOrchard’s and Schroders’ representatives, will adopt joint strategic decisions.