Rockwood Adds New Asset Classes and Scalable Products to Strengthen and Diversify Colliers’ Rapidly Growing Investment Management Platform
TORONTO and NEW YORK, May 04, 2022 (GLOBE NEWSWIRE) — Colliers (NASDAQ and TSX: CIGI), a leading diversified professional services and investment management firm, today announced that it has entered into a definitive agreement to invest in Rockwood Capital, LLC (“Rockwood”), a leading US real estate investment management company with over $12 billion in assets under management. The transaction is subject to customary closing conditions and approvals and is expected to close in the third quarter of 2022. Financial terms of the transaction were not disclosed.
Headquartered in New York, with offices in Los Angeles and San Francisco, Rockwood specializes in equity and credit investments in the multi-family, office, mixed-use, life sciences, industrial and commercial asset classes. hospitality and retail in North America. Rockwood’s history dates back to the early 1990s when the company’s founders served as real estate advisors to the Rockefellers, Olayans and other prominent global investors. Since then, Rockwood’s long-standing and experienced investment team has delivered superior returns and excellent client service through numerous market cycles. Rockwood invests in the capital stack through its flagship series of closed-end, core/core-plus, credit and long-term development value-added vehicles. Rockwood’s investors include many of the world’s largest public and private pension plans, sovereign wealth funds, endowments, foundations, insurance companies and high net worth individuals and their families.
Colliers will acquire a 65% stake in Rockwood, with the balance of equity retained by Rockwood’s management team, who will continue to run the business under the “perpetual partnership” model with Colliers, providing full alignment , long-term stability and orderly organization. succession in time. When complete, Colliers expects annual management fee revenue to be between $70 million and $75 million and operating results to be significantly accretive.
“Our partnership with Rockwood will expand our operations in the United States and add several new asset classes and strategies, including excellent capabilities in the rapidly growing mortgage space,” said Zach Michaud, Co-Chief Investment Officer. of Necklaces. “one, a solid Rockwood management team, we have a long and distinguished track record. We look forward to leveraging the many synergies with our existing investment management platforms and global real estate services business. With private real estate benefiting from macroeconomic tailwinds, we expect a continued increase in investor allocations to high-quality companies like Rockwood. We also expect this partnership to benefit combined sponsors across our platform due to enhanced product selection, world-class expertise and industry-leading risk-adjusted returns.
“This is the latest step in our ambitious growth strategy to create a world-class investment management platform within Colliers. The addition of Rockwood demonstrates our continued focus on building at scale, building on the success of Harrison Street and Colliers Global Investors, executing the recently announced transaction with Basalt and building on fundraising momentum exceptional that we have experienced in recent years. Rockwood’s values and culture align strongly with ours and we are thrilled to welcome this exceptional team of professionals to our organization. Colliers is positioned as one of the world’s leading alternative investment managers with a combined total of $77 billion in assets under management after all announced transactions are completed,” said Jay Hennick, chairman and CEO of Colliers. .
“Colliers is one of the most respected names in real estate in the world. Their investment in Rockwood is a recognition of the strength of our franchise, the talent of our professionals and the positive contributions we have made to the communities in which we have invested over the past three decades. Colliers shares our commitment to continually adding value to our properties and our investors. This mission is greatly enhanced by partnering with the talented team at Colliers,” said Tyson Skillings, Managing Partner of Rockwood.
David Becker, Managing Partner of Rockwood, added, “We are particularly attracted to Colliers’ corporate culture, decentralized operating model, significant internal ownership and impressive track record over many years. We are confident that our new partnership will enable us to leverage Colliers’ global platform to strengthen our capabilities while allowing us to remain an entrepreneurial and agile manager of our investors’ capital.
In connection with this transaction, Berkshire Global Advisors acted as financial advisor and Kirkland & Ellis acted as legal advisor to Rockwood. Sidley Austin acted as legal counsel to Colliers.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified investment management and professional services firm. With operations in 62 countries, our 17,000 enterprising professionals work together to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant internal ownership has generated 20% compound annual returns for shareholders. With annual revenues of $4.3 billion and $57 billion in assets under management, Colliers maximizes the potential of property and real estate assets to accelerate the success of our clients, investors and associates. Learn more about company.colliers.comTwitter @Necklaces or LinkedIn.
Rockwood Capital, LLC is a leading private real estate investment firm with offices in Los Angeles, San Francisco and New York. Since its inception, the firm has managed funds and segregated accounts on behalf of over 130 institutional investors, including public and private pension funds, sovereign wealth funds, endowments, foundations, insurance companies and wealthy individuals. Rockwood and its executives have invested in more than $36 billion in real estate on behalf of clients through value-added funds, credit funds and segregated accounts.
For more information, please visit https://www.rockwoodcap.com/
This press release contains forward-looking statements. Forward-looking statements include the company’s outlook for financial performance and statements regarding current goals, beliefs, strategies, objectives, plans or expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from any future results, performance or achievements contemplated in the forward-looking statements. These factors include: economic conditions, particularly with respect to commercial and consumer credit conditions and consumer spending, particularly in regions where our operations may be concentrated; commercial real estate values, vacancy rates and general financial liquidity conditions for real estate transactions; pricing and risk assumption trends for commercial real estate services; the effect of large movements in average capitalization rates on different types of properties; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operational performance; competition in the markets served by the Company; the ability to attract new customers, retain major customers and renew related contracts; the ability to retain and incentivize producers; increases in salary costs and benefits; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents compared to historical experience; the effects of changes in exchange rates against the US dollar on the Company’s Canadian dollar, euro, Australian dollar and British pound denominated revenues and expenses; the impact of pandemics on customer demand for the Company’s services, the Company’s ability to provide its services and the health and productivity of its employees; the impact of global climate change; the impact of political events, including elections, referendums, trade policy changes, immigration policy changes, hostilities and terrorism on the Company’s operations; the ability to identify and complete acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute and adapt to information technology strategies and trends; the ability to comply with laws and regulations related to our global operations, including real estate and mortgage licensing, labor and employment laws and regulations, and anti-corruption laws and trade sanctions; and changes in federal, state/provincial, or local government laws and policies that may adversely impact the business.
Additional information and risk factors are identified in the Company’s other periodic filings with Canadian and United States securities authorities (which factors are adopted herein and a copy of which may be obtained at www.sedar.com) . The forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements contained in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
We use the term assets under management (“AUM”) as a measure of the breadth of our investment management activities. Assets under management are defined as the gross market value of operating assets and the projected gross cost of development properties of the funds, partnerships and accounts to which we provide management and advisory services, including the capital that these funds , partnerships and accounts have the right to call investors under capital commitments. Our definition of assets under management may differ from those used by other issuers and, as such, may not be directly comparable to similar measures used by other issuers.