Acquisition of a U.S. dedicated investment team and management of $9.4bn of U.S. CRE loan mandates
AXA Investment Managers - Real Assets and Quadrant Real Estate Advisors announce they have reached an agreement whereby AXA Investment Managers - Real Assets will acquire from Quadrant Real Estate Advisors one of its U.S. lines of business including a real estate debt team and assume the management of $9.4 billion in U.S. commercial mortgage loans
AXA Investment Managers - Real Assets (“AXA IM - Real Assets” or the “Company”), a world leading real asset investments manager1, announces that it plans to significantly expand its global debt platform through the acquisition from Quadrant Real Estate Advisors (“Quadrant”) of one of its U.S. focused lines of business including a dedicated investment team and the management of $9.4 billion (c. €8 billion)2 of U.S. commercial real estate loan mandates.
The transaction, which is under contract and is pending regulatory approval, will firmly position AXA IM - Real Assets as a global leader in commercial real estate debt, bringing its loan portfolio to $20.5 billion (c. €18 billion)2, and its total debt platform including infrastructure finance to c. $28 billion (c. €24 billion)2. As part of the transaction, 24 members of Quadrant, including five of the founding partners (the “Lift-Out Team”), will join AXA IM - Real Assets. Quadrant will continue to manage various commercial real estate debt strategies in the U.S., Great Britain, and Ireland.
The Atlanta based Lift-Out Team will bring deep market expertise and a 20-year track record in the U.S commercial real estate debt market, complementing the existing AXA IM - Real Assets’ team which has a 13-year leading position in the European commercial real estate debt market. This combination will provide AXA IM - Real Assets the capacity to offer investment solutions to clients through different debt products and across many jurisdictions and a strong foundation for continued growth in the U.S., where it has invested more than $1.1 billion (over €900 million)2 in commercial real estate loans since 2014.
The transaction forms part of AXA IM - Real Assets’ ongoing strategy to expand internationally, and particularly in the U.S.
Commenting on the acquisition Isabelle Scemama, CEO of AXA IM - Real Assets, said: “The acquisition, of this market leading U.S. team together with the significant commercial real estate senior loan mandates, will enable us to expand the leadership of our real estate debt platform from a European to a global level. It will also be a major milestone in our goal of creating one of the largest and truly global Real Assets investment and management firms. The transaction will also further strengthen our ability to fulfill clients’ evolving and global requirements by taking a 360° approach to investing in real assets across different geographies and sectors, through opportunities in equity and debt, as well as via private or listed instruments.”
Commenting on the acquisition, Steve McCarthy, Head of North America for AXA IM - Real Assets, said: “By adding $9.4 billion of assets under management and bringing 24 high calibre real estate finance professionals into our team, this transaction will be significant for our growth in the U.S. By combining the expertise and local knowledge of the Lift-Out Team with our own large scale resources and experience as well as the AXA IM - Real Assets’ brand, we will be very well placed to significantly expand our U.S. debt business, while at the same time continuing to provide our collective clients with the commercial real estate financing solutions to which they are accustomed.”
Kurt Wright, who has been CEO of Quadrant since its establishment in 2006 and co-founded the investment platform with Executive Vice President Walt Huggins in 1993, Mr. Wright indicated that Quadrant is very excited about the transaction adding: “Quadrant Real Estate Advisors will continue to devote its resources to delivering excellent results for its valuable, strategic clients via originating and managing commercial property debt in the United States and Europe. In addition, Quadrant’s long track record of excellent performance in the U.S. is now being replicated in Europe; Quadrant is the dominant non-bank commercial property lender in the Republic of Ireland and has achieved excellent results in Great Britain.”
“Quadrant senior management remains fully focused on its fiduciary-first, fundamentals-driven, relative value style of investing. We look forward to continuing to deliver on behalf of our clients and providing unique, valuable career opportunities for our employees.”
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1 Source: INREV/ANREV Fund Manager Survey – May 2018 – in terms of assets under management
2 Conversion as of November 5th, 2018
AXA Investment Managers - Real Assets
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Note to editors
AXA Investment Managers is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €759 billion(1) in assets under management as at end of June 2018, AXA IM employs over 2,390 employees around the world and operates out of 30 offices across 21 countries.
AXA Investment Managers - Real Assets has €77 billion in assets under management, including €58.6 billion in direct property & infrastructure and €14.8 billion in real asset finance as of end of June 2018(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise over 600 people in 14 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
AXA Investment Managers is part of the AXA Group, a global leader in financial protection and wealth management.
Visit our websites: www.axa-im.com / https://realassets.axa-im.com
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1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2018 in terms of assets under management
Quadrant Real Estate Advisors LLC (“Quadrant”) is a registered investment advisor governed by the SEC with approximately $10.3 billion(1) of assets under management at the end of September 2018. Quadrant primarily focuses on debt investments collateralized by commercial real estate and has investment capability in the United States, Ireland & the United Kingdom, via its offices in Atlanta and London.
Quadrant is owned 100% by its management team which minimizes conflicts and allows Quadrant to act at all times in each client’s best interests.
Quadrant offers institutional investors both tailored single client accounts and commingled funds.
Visit our website: www.quadrantrea.com
1 Source: Quadrant unaudited data
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