GLOBAL – Guggenheim Partners is setting up its own North American infrastructure business run by former staff from Deutsche Bank's RREEF property subsidiary, after failing to buy RREEF itself last summer.
The privately held investment firm said it was expanding its real estate and infrastructure investment platform by adding a dedicated North American infrastructure investment team.
CIO Scott Minerd said: "Given the growing demand for private sector participation in infrastructure projects, we see a major opportunity for our clients to participate in building, as well as upgrading and replacing, infrastructure globally."
Guggenheim partners said the new infrastructure investment team would invest across the capital structure, including equity, structured equity and debt-related products.
To begin with, it will focus on core energy infrastructure assets – specifically power generation, midstream infrastructure and electricity transmission – in the US, Canada, Mexico and the Caribbean.
The new initiative will be led for Guggenheim Partners by the vice-chairman of Guggenheim Investments, Henry Silverman, who has been appointed global head of real estate and infrastructure.
Managing director of the new infrastructure team will be William Reid, RREEF Infrastructure's former managing director of North American energy infrastructure.
Michael Madia, RREEF's former operating partner of infrastructure, is taking on the role of managing director and operating partner, while Justine Gordon, who was a director at RREEF responsible for business development and execution of energy investments, is managing director and head of acquisitions at the new Guggenheim team.
Vince White – also previously with RREEF – is vice-president, due diligence and asset management, and James Gabriel, ex-assistant vice-president at RREEF, is vice-president acquisitions at the new Guggenheim Partners team.
Negotiations between Deutsche Bank and Guggenheim Partners on the sale of RREEF ended last summer with the parties unable to agree on terms of sale.
Last month, Deutsche announced it was rebranding its asset management divisions including the former RREEF business as Deutsche Asset & Wealth Management.