Schroders has struck a deal to buy private equity business Adveq Holdings.
The deal, for an undisclosed sum, will see $7 billion (£5.5 billion) in Adveq assets added to Schroders' balance sheet.
Subject to regulatory approval, the purchase is expected to complete in the second half of 2017.
Adveq, which was formed 20 years ago, has a predominately Swiss and German institutional and pension client base.
In recent years it has extended its global reach, with the US in particular becoming a key market.
Schroders said the acquisition complements its existing capabilities and expertise in real estate and infrastructure finance.
'This acquisition is characterised by a strong cultural fit between our two firms – a shared client focus and commitment to delivering excellent investment performance,' Schroders chief executive Peter Harrison (pictured) said in a statement.
'Adveq’s impressive investment proposition, proven track record and strong position within key markets makes this partnership a complementary combination.
'We look forward to introducing Adveq’s unique capabilities to our clients.'
Adveq founder and chair Bruno Raschle added the partnership would provide his firm 'with access to new markets and an enhanced proposition' for clients.
'Schroders’ stable ownership structure and heritage, which is closely aligned with Adveq’s long-term investment philosophy makes this an excellent fit,' Raschle added.
There will be no changes to the Adveq investment team, process or strategies following the acquisition.