Asset manager GAM has entered into an agreement with Renshaw Bay to buy its real estate finance business.
Under the terms of the deal, the entire real estate team of 10 investment specialists will transfer to GAM, where it will continue to be led by Jon Rickert, head of real estate finance.
Renshaw Bay currently managers around $1.2bn of investor capital. The acquisition is subject to customary approvals and is expected to close in October 2015.
Renshaw Bay was established in 2011 by Bill Winters, in partnership with Reinet Fund and RIT Capital Partners, to take advantage of investment opportunities resulting from the evolution of the banking and credit landscape.
Winters moved to Standard Chartered to replace chief executive Peter Sands in June this year.
Alexander Friedman, GAM’s group chief executive, said: “The persistent low-yield environment makes private market real-estate investments enormously attractive. As an asset class, it is a prime area for active managers to excel – and one we have not offered to our clients in the past. It will further diversify our business mix, adding a sustainable stream of revenues tied to long-term capital commitments.”
Renshaw Bay’s real estate strategy, focused on the origination of commercial real estate loans in Western Europe, held its successful final closing at the end of February 2015.
The management of Renshaw Bay’s real estate strategies, related legal entities and contracts, and all existing client relationships, will be transferred to GAM.
Winters said: “GAM is the ideal home for Jon Rickert and his team. As a company with world-class investment talent, it will be a great cultural fit, giving clients the reassurance of utmost continuity in how their capital is managed.”
