Swiss listed asset manager GAM is acquiring a real estate finance business which has raised 鈧�1 bn of capital to deploy in Western Europe.
Swiss listed asset manager GAM is acquiring a real estate finance business which has raised 鈧�1 bn of capital to deploy in Western Europe.
GAM announced on Tuesday that it had entered into a definitive agreement with Renshaw Bay, a London-based independent asset management firm, to acquire its real estate finance business.
Over the coming months, the acquired business will launch new strategies under the GAM brand, investing in senior and mezzanine debt backed by real estate in the UK and Continental Europe.
The 10-strong real estate team at Renshaw Bay manages $1.2 bn (鈧�1 bn) of committed capital following a final closing at end-February 2015. The focus is on the origination of commercial real estate loans in Western Europe.
Renshaw Bay was established in 2011 by Bill Winters, in partnership with Reinet Fund and RIT Capital Partners, to benefit from investment opportunities resulting from the evolution of the banking and financing sector.
GAM's acquisition of the real estate financing business is subject to customary approvals and is expected to close in October 2015. The real estate team will transfer to GAM, where it will continue to be led by Jon Rickert, head of real estate finance at Renshaw Bay.
GAM CEO Alexander Friedman 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.'
Headquartered in Zurich, GAM is listed on the SIX Swiss Exchange and had assets under management of CHF 124 bn (鈧�114 bn) at end-June 2015.
