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. “
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.
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.
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.
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.
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