Matter Real Estate, a UK-based value added and opportunistic private equity real estate firm, has revealed GCM Grosvenor as a strategic investor.
Nasdaq-listed GCM Grosvenor is making a £140 mln (€163 mln) investment to partner Matter in its growth while at the same time recapitalising Matter’s portfolio company, Placefirst, which aims to build a portfolio of 6,500 high quality single family rentals units worth £1.3 bn (€1.5 bn).
GCM Grosvenor said its investment was the ‘cornerstone of a broader ongoing relationship with Matter’ to invest in other opportunities in line with Matter’s investment strategy.
Peter Braffman, MD at GCM Grosvenor, said it provided the US firm with the ability to deploy capital into ‘what we believe to be attractive investment opportunities across Europe, in sectors supported by strong social and demographic fundamentals’.
He added: ‘We believe in Matter’s unique approach to investing in and growing real estate platforms and aggregating portfolios with strong cashflow.’
David Christie, CEO at Matter Real Estate, who launched the firm in 2021, said: ‘GCM Grosvenor’s investment in Matter is a great endorsement of our investment strategy only one year after our launch. They recognise us as an emerging manager with an experienced team in place. We are looking forward to continuing our strategic relationship beyond their investment in Placefirst.’
As a portfolio company, Placefirst is a developer, owner, and operator of single-family rental housing in the UK. The firm recently reported record portfolio growth, reaching 1,500 homes in April 2022, with a further secured pipeline of over 1,000 units.
As part of the equity recapitalisation, GCM Grosvenor invested on behalf of several of its investment programs. Investors in these programs include a number of public and private pension plans from the US, Europe, and Asia.