The Principal Financial Group has entered into a definitive agreement to buy a 60 percent stake in Claritas Investments, Ltd., a Sao Paulo-based mutual fund and asset management company with more than $1.8 billion in assets under management.

Claritas manages equity funds, balanced funds, managed accounts and other strategies for affluent investors and institutions through its multi-channel distribution network.

The Principal a global retirement and investment management firm, is no stranger to Brazil.

Since 1999, the firm has offered pension and annuity products through Brasilprev, its joint-venture operation with Banco do Brasil.

Larry D. Zimpleman, chairman, president and CEO of The Principal, said the company “will continue to deploy capital for acquisitions that are aligned with our focused strategies and complementary to our existing businesses. While Brasilprev and Claritas target different markets, both support our goal to be a pension and long-term investment leader in Brazil.”

Terms of the deal, which is expected to close in April, was not disclosed.

Lazard Frères & Co., LLC, advised The Principal on the transaction.

Hung Tran writes for Money Management Executive.