Colliers Acquires $6B Asset Management Firm In Push To Add Recurring Revenue
One of the largest commercial real estate brokerage firms in the world is taking a big step into the world of permanent real estate investment funds.
Colliers is under an agreement to acquire a 75% interest in Denver-based Versus Capital, an alternative real estate management firm formed in 2010 and with $6B in assets under management. Versus operates two main funds: its Multi-Manager Real Estate Income Fund, which invests in both private and public equity and debt, and its Real Assets Fund, which invests in private infrastructure, private farmland, private timberland and public real assets, according to its website.
Versus Multi-Manager fund is marketed through institutional private and public real estate managers.
Versus is expected to contribute $75M to $80M in management fee revenue annually, Colliers said in a press release, with the deal expected to close in the fourth quarter.
“Our partnership with Versus is an important first step in accelerating Colliers’ global private wealth distribution capability, which is becoming increasingly important alongside our world-class institutional limited partner relationships,” Colliers co-Chief Investment Officer Zach Michaud said in a statement.
Colliers plans market Versus funds through its investment management platform.
This isn't Colliers' first investment in a fund operator. Last month, Colliers agreed to buy a 65% stake in Rockwood Capital, a group that invests in equity and credit in multifamily, office, mixed-use, life sciences, hospitality and retail assets in North America, which is expected to contribute up to $75M a year in management fee revenues. That deal is expected to close in the third quarter.
“The addition of Versus demonstrates our continued focus on building scale and opportunity in our IM business,” Colliers CEO Jay Hennick said in the release. “On closing of Versus and Rockwood, our investment management operations will oversee in excess of $83B in assets under management, of which almost $70B will be either perpetual or long-dated strategies, further strengthening our recurring revenues for the future.”