CBRE Group Inc. is acquiring a majority interest in Toronto-based investment management business Caledon Capital Management Inc.
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.
With experience in infrastructure and private equity investing, many members of the Caledon management team previously worked for large Canadian pension plans. More than 30 employees in Toronto manage about $9 billion of assets for institutional investors through a combination of direct investments, co-investments, secondaries and private funds.
Read: Investors getting more creative with alternatives amid stiff competition
“Investors are increasing their allocations to alternative investments, including real assets,” said Ritson Ferguson, chief executive officer of CBRE Global Investors, noting Caledon’s investment solutions are a logical extension to the firm’s existing suite of real estate and infrastructure investment solutions.
“CBRE’s global reach and resources will improve Caledon’s access to more and larger quality investment opportunities around the world,” said David Rogers, founding partner at Caledon. “This will enhance our ability to continue to deliver attractive returns for our clients as infrastructure investing becomes increasingly global.”
Closing is expected to occur later this year and is subject to regulatory approval and other customary closing conditions.
Read: 2017 Top 40 Money Managers Report: Investing in the age of Donald Trump