Global real estate asset manager CapitaLand Investment (CLI) is set to acquire a key Wingate business as part of its growth strategy in the Asia-Pacific region.
It announced the acquisition of Wingate’s real estate investment management and corporate credit business, with Wingate chief executive Nick Jacobson taking over as executive director.
He will succeed founder Farrel Meltzer, who will remain involved with the company as a non-executive director and serve as a senior advisor to CLI in Australia and its global private credit business.
The acquisition is expected to support CLI’s growing private credit business and portfolio in Australia, with Wingate strengthening CLI’s extensive proprietary deal origination networks and improving access to more institutional and private investors.
Meltzer noted that Wingate’s employees, co-investors and customers will benefit greatly from the new partnership.
“This partnership will bring new international perspectives, create seamless cultural and operational synergy and further elevate the platform’s already high standards of co-investor management,” he said.
Jacobson added that the company was excited to work with CLI to achieve its growth ambitions.
“The growth of Wingate with the support of CLI represents a truly industry-transforming prospect for what can be offered to local and global institutional investors,” he said.
“The combination of Wingate and CLI will further strengthen Wingate’s market position as a leader in Australian real estate private credit and become the fund manager of choice for institutional investors seeking exposure to the stable and attractive Australian real estate sector. »
Wingate has executed over 350 transactions worth over $20 billion in property value in the Australian market.
Commenting on the acquisition, Paul Tham, CLI Group Chief Financial Officer, highlighted Wingate’s strong track record, market positioning and management team.
“Wingate’s private credit capabilities complement CLI’s own private funds platform and will enable us to collaborate to create greater value for our financial partners in Australia and beyond,” Tham said.
As of September 30, 2024, CLI had S$134 billion in assets under management, as well as S$102 billion in funds under management held through six real estate investment trusts and listed commercial funds. It also holds a range of private real asset vehicles that invest in thematic and tactical strategies.
The transaction is expected to be completed in the coming months, with the final transaction subject to the fulfillment of conditions, including regulatory approval.
Last month, CLI also welcomed two senior recruits from Barrenjoey Capital Partners into newly created roles to support its growth in the Australian market. Angelo Scasserra has been appointed managing director of CLI Australia, with Rahul Bharara as chief investment officer.
According to CLI’s Tham, Australia remains one of its target markets as it aims to accelerate its geographic diversification efforts.
“Australia will play a greater role in CLI’s FUM contribution as we work towards our $200 billion FUM target in 2028. CLI has committed to investing up to $1 billion (around S$867 million) to grow our FUM in the country,” he said. said.
“As we strengthen our position as a global leader in real asset management, we will continue to seek opportunities to expand our presence in Australia through our listed funds, private funds, as well as our commercial management and asset management activities. hosting to drive growth in commission revenue for CLI. »
At the same time, although Wingate’s core investment strategies, including portfolio companies such as ORDE Financial, Fifo Capital and Talaria Asset Management, are excluded from the acquisition, the company announced that these assets will be combined in a new investment company, Fancourt Capital Group (FCG). .
Meltzer will chair the FCG, with Yoni Cukierman, current managing director of Wingate’s principal investment strategy, taking on the role of CEO.
