Doughty Hanson has renounced real estate in order to focus on private equity and has declared that no future funds will be raised for its property business.
However, the real estate team will continue to manage the Real Estate Fund II as before.
The change, which also applies to Doughty Hanson’s technology ventures business, follows the firm’s switch to a partnership structure.
“We are not planning to make changes to our real estate or technology ventures teams, which will continue to manage their existing funds as before and will focus on generating returns for our investors. However, we will not be establishing any new funds in these sectors,” said Doughty Hanson CEO, Stephen Marquardt.
The firm’s structure was changed following the death of co-founder and majority shareholder Nigel Doughty in February 2012. Dick Hanson resumed his role as head of private equity and executive chairman and has reviewed the business to ensure it is “best positioned to continue to deliver outstanding returns to the investors in its funds,” according to a company statement.
“We have spent considerable time speaking with our investors and reflecting on the future of the business. While we have had notable successes in both real estate and technology ventures, the real heritage of Doughty Hanson lies in its private equity business, where we have an outstanding track record,” Marquardt said.
“Following the creation of a partnership structure for the private equity business, today’s announcement is a logical step and in the best interests of our investors, the firm and its many stakeholders.”
