Stone Point Capital LLC has closed its investment in Broadstone Real Estate LLC. Financial terms weren’t announced. Proceeds will be used to buy stakes in two private real estate investment offerings currently managed by BRE, Broadstone Net Lease and Broadtree Homes. Broadstone Real Estate, effective Wednesday, is jointly owned by the Tait and Leenhouts families, Stone Point, and certain BRE employees.
ROCHESTER, N.Y., July 1, 2015 /PRNewswire/ — As anticipated and previously announced in a press release dated June 1, 2015, Broadstone Real Estate, LLC (BRE) today announced that it has closed on an equity investment commitment from Trident VI, the sixth in a series of private equity funds managed by Stone Point Capital, LLC. Proceeds from the transaction will primarily be used to purchase interests in the two private real estate investment offerings currently managed by BRE, Broadstone Net Lease (BNL) and Broadtree Homes (BTH), thereby substantially increasing management’s equity commitment to the offerings.
In connection with the transaction, BNL also acquired a $10 million convertible preferred interest in Broadstone Real Estate. As consideration for the preferred interest, BRE will receive $10 million of additional common shares of BNL. Approximately 40 BRE employees also received equity interests in BRE, BNL and BTH.
“This transaction reflects the natural evolution from a small family business formed in 2006 to one that combines the strength and sophistication of an institutional organization with the culture and values of a family and employee-owned business,” commented Amy Tait, Broadstone’s Chairman and CEO. “Our strategic partnership with Stone Point Capital enables expansion and growth for BRE’s operating platform. They have already demonstrated to us the depth of their connections, relationships, and financial services expertise.”
Effective today, Broadstone Real Estate is jointly owned by the Tait and Leenhouts families, Trident VI, and certain BRE employees. BRE has a newly formed Board of Managing Members that includes two Trident representatives and two management representatives. No shares of BRE, BNL or BTH were liquidated in connection with this transaction.
SOURCE Broadstone Real Estate, LLC