Aon boosts investment arm with $475m Townsend acquisition

Broker Aon is to acquire US-based real estate and investment management firm Townsend Group, majority owned by Colony NorthStar, for $475 million.

The transaction will boost Aon's offering in alternative private market assets. It is expected to close in the next six months.

Following the deal, Aon will integrate Townsend's solutions into its investment business, which includes outsourced chief investment officer (OCIO) services and advisory services for large and mid-sized global organisations.

"Our clients' investment strategies are focused on driving the strongest risk management and return outcomes, and alternative private market investments are playing an increasingly important role in those strategies," said Cary Grace, chief executive officer of global retirement and investment solutions at Aon.

"This acquisition will unite two investment industry leaders that provide objective advice and implemented OCIO solutions to institutional investors. Together, we will expand our capabilities and expertise to create sophisticated investment solutions that best serve our clients and further accelerate our growth."

Aon's investment organisation manages more than $100 billion of worldwide assets and advises on $4.2 trillion of assets globally for more than 2,500 clients around the world. Townsend advises on $175.7 billion in global assets and manages $14.5 billion in assets.

Terry Ahern, CEO of Townsend Group, added: "We were happy to have a large number of quality firms that wanted to partner with us, but it was the commonality of culture, approach and expertise that led us to Aon. We look forward to having additional opportunities to continue our evolution that we began 30 years ago, while leveraging the platform, capabilities and people that, together, Aon and Townsend can offer to clients."

Ahern will continue to lead real estate and real asset investment services as part of Aon's global retirement and investment organisation.

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