High-quality, diversified, risk-adjusted returns become increasingly hard to find. In response, global institutional investor giants — from insurers to sovereign wealth funds to family offices and pension funds — are increasingly turning to smaller specialist real estate fund managers to access a wider spectrum of property investment strategies, geographies and products.

Examples of deals in the past 12 months or so are plentiful. Back in November 2024, M&G bought a controlling stake in fund manager BauMont Real Estate Capital to help strengthen its position in European private asset investments. In May 2025, L&G acquired a 75 percent stake in real estate investor Proprium, saying this would accelerate L&G’s private markets growth ambitions, broaden the firm’s real est