CBRE Group Inc (NYSE: CBG) has agreed to acquire a majority stake in Caledon Capital Management, a Toronto-based portfolio management and advisory firm specializing in infrastructure and private equity investments. Terms weren’t disclosed for the deal, which will see Caledon renamed CBRE Caledon Capital Management and operating as a separate entity under CBRE’s investment management unit. The closing is expected to occur later this year. Caledon, which has $9 billion in assets under management, was founded in 2007 by David Rogers, who formerly led the private equity group at Ontario Municipal Employees Retirement System (OMERS).
Photo: David Rogers, founding partner of Caledon Capital Management.
CBRE Group, Inc. Announces Definitive Agreement to Acquire Majority Stake in Caledon Capital Management
Acquisition to Expand Suite of Infrastructure Investment Programs
June 09, 2017
LOS ANGELES–(BUSINESS WIRE)–CBRE Group, Inc. (NYSE:CBG) today announced that it has entered into a definitive agreement to acquire a majority interest in Caledon Capital Management Inc. (Caledon), a Toronto-based investment management business specializing in private infrastructure and private equity investments.
Upon closing, Caledon will be renamed CBRE Caledon Capital Management Inc. and will operate as a separate business unit under CBRE’s independently operated investment management subsidiary, CBRE Global Investors. The Caledon management team comes with deep and successful experience in infrastructure and private equity investing. Prior to Caledon, most of the management team previously worked for Canadian pension plans that are leaders in infrastructure and private equity investing. This team will continue to manage the business and will maintain significant long-term ownership.
Caledon’s team of more than 30 people in Toronto manage approximately US$7 billion (over CA$9 billion) of assets for institutional investors through a combination of direct investments, co-investments, secondaries and primary funds. The pending addition of Caledon will complement the suite of investment solutions offered by CBRE Global Investors and its listed equity management arm, CBRE Clarion Securities.
“Investors are increasing their allocations to alternative investments, including real assets,” said Ritson Ferguson, CEO, CBRE Global Investors. ”Caledon’s market-leading investment solutions are a logical extension to our existing suite of real estate and infrastructure investment solutions, enhancing our position as an industry leader.”
“CBRE’s global reach and resources will improve Caledon’s access to more and larger quality investment opportunities around the world. This will enhance our ability to continue to deliver attractive returns for our clients as infrastructure investing becomes increasingly global,” said David Rogers, Founding Partner, Caledon.
Closing is expected to occur later this year and is subject to regulatory approval and other customary closing conditions.
About CBRE Group and CBRE Global Investors
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE Group offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. and is one of the world’s largest real estate investment management firms with $86.5 billion in assets under management as of March 31, 2017. Please visit our website at www.cbre.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
About Caledon Capital Management Inc.
Caledon is a leading infrastructure and private equity solutions provider. The firm seeks to create long-term value for its clients by accessing and managing high-quality investment opportunities and building comprehensive and customized infrastructure and private equity portfolios. Caledon’s business model is to combine direct investments, co-investments, secondary investments, and primary fund investments in a manner to suit each client’s unique investment objectives. The firm currently provides its services through customized separately managed accounts, portfolio management advisory solutions and pooled funds. Since its inception in 2006, the Caledon team has grown to over 30 people and manages over CA$9 billion of assets on behalf of 15 clients across North America.
CBRE Group, Inc.
Steve Iaco, 212-984-6535
Robert McGrath, 212-984-8267
CBRE Global Investors
Pam Barnett, 213-683-4368
Photo courtesy of Caledon Capital Management