Valad Europe has starting hunting for a new partner as it moves to replace Blackstone as majority shareholder.
The €5bn (£3.9bn) pan-European investment manager has drawn up a shortlist of candidates in its search for a new long-term backer, and has appointed investment bank UBS to manage the process.
Valad will hold discussions with the hand-picked group of institutional-type partners over the coming months, and plans to have a new partner in place early in the new year.
The move will bring to an end the investment manager’s more than three-year partnership with private equity group Blackstone.
The US group acquired the investment manager in 2011 as part of its takeover of listed Australian firm Valad Property Group, which owned around A$600m (£326m) of direct property as well as the fund management business.
Valad Europe completed a back-to-back deal to split from its Australian parent to become an independent owner-managed company, with Blackstone holding a majority stake.
The investment was made through the US firm’s $10.9bn (£6.7bn) Blackstone Real Estate Partners VI, which closed in 2008.
The fund has an eight-year investment period that closes in 2016, but it is now almost fully invested.
A source said: “This is a mutual decision. The nature of a tie-up with a private equity firm meant it always had a finite lifespan and Valad would ultimately like a long-term, stable capital partner to help expand the business.”
Valad Europe, run by chairman Marty McCarthy, manages circa €5bn across 20 funds and mandates in 13 European countries.
Since 2011, it has secured €5.1bn in new fund launches, new investment mandates and existing fund extensions.
All parties declined to comment.
bridget.oconnell@estatesgazette.com
