Aviva Investors has integrated its direct real estate, infrastructure and private debt businesses to create a platform with £37 billion of assets under management.
The formation of the unit, to be known as Aviva Investors Real Assets (AIRA), was in response to an expected doubling in global allocations to alternative strategies, including real assets and private debt, by 2025, the manager said.
The business would be led by chief investment officer Mark Versey, who would oversee about 300 staff across five cities, Aviva Investors said.
Also, AIRA would have full control over fund management, asset management, origination and distribution in its chosen markets, the manager said.
As a result of AIRA’s creation, Aviva Investors also said it has entered agreements to sell its Real Estate Multi-Manager business and its stake in Encore+, a pan-European commercial property fund, to LaSalle Investment Management.
Aviva Investors CEO Euan Munro said the move to integrate the manager’s real asset capabilities into a single platform “makes sense” for clients and was a key priority for the business.
“By focusing on our existing origination strengths in Europe and building out our product and global distribution capabilities, I am confident that we will establish Aviva Investors as a market-leading real assets platform,” Munro said.