Tag Archives: Investment Banks

Macquarie To Acquire Presidio Partners LLC

Macquarie Group has entered into an agreement to acquire 100% of the membership interests in Presidio Partners LLC, a leading US-based real estate private capital raising and advisory firm. Terms of the transaction were not disclosed.

“Macquarie will assist with proprietary and third party overseas capital for potential US investment opportunities, providing its full resources to our industry. “

Desi Co


The transaction is expected to close in the fourth quarter of 2010, and will be subject to regulatory approvals and other customary closing conditions, according to the press release.

Presidio’s strength in the US and Europe, in combination with Macquarie’s preeminent position in Asia Pacific, will create a leading global real estate private capital markets platform.

The combined platform will have a 19 person private capital team, who have raised a combined US$30 billion for private real estate transactions from 390 institutions in Europe, North America, the Middle East, and Asia Pacific since 2003.

The private capital team will be supported by Macquarie’s broader real estate advisory, equities and debt capital markets business.

Chris Green, Co-Global Head, Macquarie Capital Advisor’s Real Estate Group, says:

“The addition of the Presidio team to Macquarie’s existing real estate platform will bolster our real estate offering and increases investor and client coverage across all major developed markets and key emerging markets. Their long-term industry experience provides Macquarie with additional real estate private capital markets capabilities in the US and Europe, and is a natural complement to our preeminent franchise in the Asia Pacific region.”

The acquisition of the private capital team follows the recent hire of a six person CMBS team in the US.

“We are excited to be able to bring our experience and client relationships to Macquarie.  Our clients will still receive the same personalized, institutional quality senior attention that they’re accustomed to, but will now be able to benefit from the reach of Macquarie’s global platform and its broad range of investment banking services,” Desi Co, Partner of Presidio Partners says.

“Macquarie will assist with proprietary and third party overseas capital for potential US investment opportunities, providing its full resources to our industry.  We will work together to provide our key institutional relationships with globally accessed club and direct investment opportunities,” Mr. Co adds.

“We are seeing an increasing co-dependence of private and public capital in real estate transactions along with an increased globalization of capital flows. We are excited about creating a truly global real estate private capital business and believe Macquarie’s strength across both public and private equity plus debt capital markets will ensure clients are able to maximize access to opportunities and capital,” Brett Robson, Global Head of Macquarie Real Estate Private Capital markets, says in the statement.

(See attached factsheet for additional information)

Presidio is a San Francisco and Chicago based real estate private capital raising and advisory firm.

Presidio is ranked as a top-three real estate private capital raiser, both in the US and globally, having raised over US$11.8 billion of equity over 21 transactions since 2003.

In addition to its US presence, the company has been particularly active in raising funds for sponsors based in the UK, Europe and the emerging markets.

Outlook Updated

However, just a week before the announcement above, Macquarie Group released an update to the short term outlook statement it provided to the Group’s AGM on July 30th.

The updated statement is outlined in a presentation, delivered in London the same day by Macquarie’s Deputy Managing Director, Richard Sheppard.

Mr Sheppard re-iterated comments made to the AGM on July 30th that global market conditions are significantly impacting activity levels in Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities and that uncertain conditions make short-term forecasting very difficult.

Mr Sheppard advises that conditions in most markets have continued to be weak therefore, Macquarie currently anticipates the first half profit to September 30th 2010  for the current financial year to be approximately 25% down on the prior corresponding period.

Macquarie’s other businesses – Corporate Asset Finance, Banking & Financial Services and Macquarie Funds – continue to expand, underscoring the Group’s diversity and general market share, Mr. Sheppard says.

Press release.

Presentation.

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Goldman Sachs' Traders Go Freelance

Goldman Sachs Group Inc (GS) plans to shut down its principal strategies business, the unit that makes investments/bets with the company’s own capital, following JP Morgan Chase & Co’s decision to do the same.

“I would not be surprised if we’ll see a wave of fresh hedge funds arising as as the prop trade is being unwind.”

econotwist


There has not been an official announcement from Goldman Sachs yet. One of the main reasons of the disbanding is to comply with new US regulations. The Dodd-Frank financial reform act prohibits banks from risking capital losses by betting with their own money.

The US banks have 4 years to comply, with a potential extension of a possible 3 more years.

However there’s stuff going on in the investment banking industry, as pointed out in earlier posts:

See: Flight to Mystery

Goldman Sachs wants to accommodate its employees in the unit to have them seek new jobs.

Lloyd Blankfein

Lloyd Blankfein

I’m pretty sure a few of them will set up a couple of hedge fund and take some of the trade with them – with or without Mr. Blankfein’s approval.

In fact, with all the major banks shutting down their so-called prop desks, there will be a lot of talent to distribute, and I would not be surprised if we’ll see a wave of fresh hedge funds arising as as the prop trade is being unwind.

At Goldman Sachs, the principal strategies business have generated 10% of the banks income.

See also: Stanley’s Angles

Related by The Swapper:

Geithner Warns EU

EU Defends Hedge Fund Plans after Geithner’s Warning

Sarkozy, Brown Fails To Agree On Hedge Fund Rules

Transatlantic Bailout Buddys Agree To Disagree

Merkel, Obama, Sarkozy Have Investors Shitting Their Pants

China’s Sovereign Wealth Fund To Invest In Nassim Taleb’s Bear Fund

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Stanley’s Angles

Zoe Cruz, the former investment banker at Morgan Stanley – nicknamed “Cruz Missile” – has launched her own hedge fund called Vorás Capital Management, together with former colleague Ellen Brunberg. The firm will be split in two; one global macro fund and one credit opportunities fund.

“I guess one will be buying, while the other is selling.”

econotwist

After spending nearly a quarter of a century at Morgan Stanley, reaching Co-President in 2006, she was ousted from the firm for numerous reasons.   One key being, a unit that reported to Cruz losing around US$ 3,7 billion in sub-prime real estate investments.

In 2006, she was on the Forbes 100 list of the most powerful women in the world, ranked number 10.

As being one of the most influential women on Wall Street, she was able to recruit many former Morgan Stanley employees, like Philip Newcomb, who was co-head of interest rates and currencies.

Mr. Newcomb is now chief operating officer at Voras Capital Management and is based in New York, off Park Avenue.

Why Voras?  Voras is a Greek word for “north” which is the name of the area where Zoe Cruz was born, gfinancenews.com writes.

Voras Capital Management has opened up offices in New York and Hong Kong. The fund is incorporated in the United Kingdom.

Fundraising has been challenging post-crisis, however Cruz managed to raise a decent amount.

Many pension funds have programs aimed at investing in emerging minority-female managers, and the Harvard business school graduate has been actively fundraising for the past few months and raised around US$ 200 million.

Two funds with unique strategies will be created, a global macro fund, which will be managed by Zoe Cruz.

The other fund is a credit opportunities fund run by Ellen Brunberg, who previously ran Morgan Stanley’s European securitized products group.

Credit opportunity funds are particular attractive to institutional investors, especially ones flush with cash.

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Filed under International Econnomic Politics, National Economic Politics