Barings seizes $6 billion asset manager Altis as launch pad for Asia-Pacific

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“Barings has deployed $5bn of debt in Australia since 2011 providing corporate loans as well as $400m of commercial property and construction loans since 2020, but on the equity side we have no presence in Asia-Pacific,” he said. .

“We will continue to grow the business, support it and let it continue to execute its value-added strategy in Australia,” he added.

Altis acquisition adds to wave of M&Activity occurring in the management of global property funds, such as Swedish private equity firm EQT which bought Hong Kong-based Baring Private Equity Asia (unrelated to Barings) for $10.4 billion in May.

Last year, London-listed alternative asset manager Intermediate Capital Group acquired Brisbane-based property financier Newground Capital Partners, while US giant Apollo Global Management acquired half of the non-bank lender and property investor MaxCap.

Altis co-founder and chief executive Alistair Wright told the Financial analysis it would be “business as usual” in the medium term, with the investment manager benefiting from Barings’ balance sheet and its relationships with foreign investors.

“We will continue to execute on our existing strategies, delivering exceptional results to these clients, and we look forward to bringing our investment solutions to a broader global clientele,” he said.

The deal, which takes effect September 1, will give Barings significant exposure to the burgeoning industrial property sector through projects such as the 40-hectare Altitude estate at Bankstown Airport and The Yards estate in 77 ha in Orchard Hills, where 422,000 m² of storage is to be developed.

It will also connect Barings to the new real estate platform set up in June by Aware Super, which owns $1.5 billion in industrial, office and construction assets for rent, and which has appointed Altis as its local investment adviser. .

Accounts deposited with Australian Securities & The investment commission shows Altis generated total revenue of $97 million in the year ending June 30, 2021 and pre-tax profits of $65 million.

That result, which was significantly higher than the $25 million in revenue and $13 million in pretax profit reported in the prior year, was $79 million in performance fees.

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