NEW YORK | Tue Oct 9, 2012 9:41am EDT

NEW YORK (Reuters) - Metlife Inc (MET.N) said Tuesday it will build an asset-management business for outside investors focusing on investments in real estate equity, commercial mortgages and debt private placement.

"Asset management is a capital-efficient business with attractive returns on equity," Steven Goulart, MetLife's chief investment officer, said in a statement. "The strong demand for high-quality private assets among institutional investors makes this an attractive time for market entry."

MetLife, the largest U.S. life insurer, which manages some $500 billion in general account assets for its policyholders, currently has a small third-party management business focusing on index funds.

MetLife is reorganizing its real estate and private placement groups to facilitate the expansion.

Robert Merck, global head of real estate investments, will continue to run the group that has been renamed MetLife Real Estate Investors. It currently manages about $43 billion of commercial mortgages and $10 billion in direct real estate investments, assets that will be folded into the outside management business.

The new equity strategies group will be run by Mark Wilsmann, who has led MetLife's commercial mortgage business since 2003.

The new debt strategies group, which will raise funds for real estate projects from institutional investors that include other insurance companies, pension plans and sovereign wealth funds, will be run by Brian Casey. He has been heading MetLife's Washington, D.C., real estate office.

The company, which says it is the largest life insurance lender, currently manages about $50 billion of privately placed debt.

MetLife, which does not break out its individual portfolio investment returns, has no immediate plans to acquire asset-management companies.

"Right now our focus is building on the great strength we have in-house," said Christopher Breslin, a company spokesman.

(Reporting by Jed Horowitz; Editing by Leslie Adler)

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NEW YORK | Mon Oct 8, 2012 11:25am EDT

NEW YORK (Reuters) - Goldman Sachs Group's asset management unit on Monday named a former head of the U.S. Security and Exchange Commission's investment management division as its deputy general counsel.

Andrew "Buddy" Donohue, who most recently was a partner in the New York office of Morgan Lewis & Bockius LLP, will join Goldman Sachs Asset Management effective November 1.

Donohue said he decided to make the change because he believes he can make more of an impact in-house. "I like being part of the discussions with management about issues and approaches the firm can take early on," he told Reuters.

Donohue will report to Ellen Porges, general counsel for Goldman Sachs Asset Management.

He was head of the division of investment management at the SEC from May 2006 to November 2010. In his role, he spearheaded an initiative to restrict how much mutual fund companies could charge in marketing and servicing fees, known as 12b-1 fees. The proposal was met with vehement opposition and ultimately never passed.

Donohue also led the SEC's examination of how ETFs use derivatives, which is ongoing. Prior to the SEC, Donohue served as global general counsel for Merrill Lynch Investment Managers and before that as general counsel at OppenheimerFunds.

Goldman Sachs Asset Management has $702 billion in assets, according to the firm's website. The firm's 75 mutual funds alone have $190 billion, according to Lipper.

(Editing by Leslie Adler)

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