Tristan Capital Partners has sold a 40% stake in itself to €112 bn multi-specialist asset manager Candriam Investors Group as corporate M&A activity in the European private equity real estate sector ignited this week.
EuroProperty, PropertyEU’s sister title, reports that Candriam, a pan-European group and affiliate of New York Life Investment Management, is announcing the strategic partnership today, representing its first foray into European real estate investment management.
The news comes during an exceptional week in which both London’s Brockton Capital and Munich’s GLL Real Estate Partners were taken over. It also ensures momentum continues where it left off late last year when Germany’s Patrizia stunned the industry by announcing the acquisition of Rockspring Property Investment Managers and US group Principal Global Investors bought Internos Global Investors.
The glut of transactions is a symptom of the significant and sustained appetite among global capital sources for real estate, and for real assets and income-producing alternatives generally.
Meanwhile, a raft of large asset managers is trying to buy into real estate boutiques as an accelerated way to offer long-term real estate solutions to existing clients and to help win new ones.
Speaking of the strategic partnership with Candriam, Tristan’s chairman, co-CEO and majority shareholder Ric Lewis emphasised the firm’s continued independence and the fact it shunned offers from other groups that were seeking majority control.
Hodes Weill & Associates advised the firm.
Tristan has €9.1 bn of AUM and 105 professionals in eight locations.
While Candriam has acquired a 40% shareholding, it also has a first option to increase its stake in the future. Naïm Abou-Jaoudé, CEO of Candriam and chairman of New York Life Investment Management International, said: ‘This strategic partnership will allow Tristan to further accelerate growth and capitalise on the growing demand for real estate investments.’
Lewis added: ‘We will be in an even stronger position to pursue our current and future business plan and to offer more attractive opportunities, products and strategies to clients.’
The strategic partnership with Tristan enables Candriam to add real estate, a major asset class which continues to attract strong institutional investor demand, to its multi-specialist offerings. Candriam’s existing offerings include investment solutions in fixed income, equities, alternatives, sustainable investments and asset allocation strategies.
Yie-Hsin Hung, CEO of New York Life Investment Management, said: 'We are fully supportive of Candriam’s expansion into the real estate market with Tristan Capital Partners. The boutiques within our growing global asset management business offer a powerful, diverse range of insights and differentiated strategies to our clients, and this strategic partnership further demonstrates our commitment to expanding our alternatives capabilities.'
Naïm Abou-Jaoudé, CEO of Candriam and Chairman of New York Life Investment Management International, commented: 'As we grow our investment offerings and operations in Europe, we continue to seek strategic relationships and acquire complementary capabilities. Tristan Capital Partners is a true expert real estate manager. They have built
an impressive track record and a strong and loyal client portfolio. Both our firms share the same values and strong corporate culture that have shaped our respective success. I am convinced that this strategic partnership will allow Tristan to further accelerate growth and capitalise on the growing demand for real estate investments.”
Image: Ric Lewis, chairman, co-CEO and majority shareholder of Tristan Capital Partners and Naïm Abou-Jaoudé, CEO of Candriam and Chairman of New York Life Investment Management International