Principal Financial Group Inc. has agreed to acquire a majority stake in Finisterre Capital, an emerging markets investment firm.

Principal Global Investors L.L.C., a unit of Principal, Des Moines, Iowa (NYSE:PFG), plans to acquire control from the 5 partners who own the firm — Frode Foss-Skiftesvik, Paul Crean, Rafa?l Biosse Duplan, Xavier Corin-Mick and Yan Swiderski.

The deal includes two affiliates companies: Finisterre Capital L.L.P., London, and an affiliate, Finisterre Holdings Ltd., London.

Together, the firms manage the equivalent of about $1.6 billion in assets. Most of the assets are in a global opportunity fund, a sovereign debt fund and a credit fund.

The Finisterre partners “will retain a significant minority stake in the business and have agreed to put a significant share of their consideration into funds managed by the firm,” Principal says in a statement.

The price Principal will be paying was not immediately available. Principal says it hopes to complete the deal sometime after June 30.

The partners who are selling the controlling stake in Finisterre will continue to direct the day-to-day operations and will keep authority over fund investment decisions, Principal says.

Principal announced last week that a unit has agreed to acquire HSBC AFORE S.A. de C.V., a personal retirement account manager in Mexico, from a unit of HSBC Holdings P.L.C., for the equivalent of $198 million.

- Allison Bell

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