Origin partners will retain a 26% stake in the business and will be reinvesting a substantial share of their consideration into funds managed by the firm, according to a statement.
Origin is a global equity firm based in London and has about $3bn in assets under management.
The acquisition will help Principal, which has been primarily engaged in managing pension funds till now, to fortify its emerging market investment capabilities through the launch of new emerging market products and strategies on a widened platform.
The acquisition would also strengthen Principal’s global equity capability, broaden its product suite, as well as enhance its investment potential in emerging markets and in global small and mid-cap companies that seek high quality investments.
To build its presence in global equities business, Principal has earmarked $700m for 2011.
The acquisition is the Principal’s third for 2011. In April, it acquired 100% of HSBC AFORE from Grupo Financiero HSBC and a majority stake in Finisterre Capital.
Excluding the purchase price and costs of combining the companies, Principal Financial said the acquisition will be neutral to earnings this year and boost results slightly in 2012.
The deal is expected to close in October, pending regulatory approval.
