GTCR has signed an agreement to sell The Townsend Group to NorthStar Asset Management Group, a real estate asset management firm. GTCR acquired Townsend in partnership with the company’s founder and CEO Terry Ahern in September 2011.
NorthStar Asset Management Group (NSAM) will acquire an 85% equity interest in Townsend for approximately $380 million, predominately from funds affiliated with GTCR. Townsend’s management team will own the remainder of the business and will continue to direct day-to-day operations.
The Townsend Group is a provider of investment management and advisory services focused exclusively on real estate and real assets. Townsend provides services on behalf of regulatory assets under management of approximately $13 billion and provides advisory and consulting services to clients who have real estate allocations of approximately $170 billion. The company was founded in 1983 and is headquartered in Cleveland with additional offices in San Francisco, London and Hong Kong (www.townsendgroup.com).
NorthStar Asset Management Group Inc. (NYSE: NSAM) is a global asset management firm focused on managing real estate and other investment platforms in the United States and internationally. The company is headquartered in New York (www.nsamgroup.com).
“We are extremely pleased with this strategic opportunity to expand and accelerate our asset management capabilities, both in the United States and internationally, with the acquisition of one of the world’s premier institutional real estate asset management platforms,” said David Hamamoto, Executive Chairman of NSAM. “Townsend, which sits at the epicenter of the global real estate market, having significant influence over $170 billion of real estate, has a brand and franchise that is second to none.”
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $12 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).
“We have great admiration for the Townsend team. We are pleased to have participated in the company’s growth and successes,” said GTCR Managing Director Collin Roche. “During our ownership term, Townsend enhanced its capabilities and product offerings and invested in the company’s people and technology to create a stronger value proposition for its clients.”
Morgan Stanley & Co. is the sole financial advisor to NSAM on this transaction and Morgan Stanley Senior Funding is the lead provider of a $500 million debt financing commitment to NSAM which will be used to fund the transaction and for general corporate purposes, including repurchases of its common stock.
The acquisition of Townsend is expected to close in early 2016.
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15