Colliers has acquired a 75% stake in Basalt Infrastructure Partners, giving the real estate services firm a foothold in infrastructure fund management.
The “strategic investment” comes three and a half years after Colliers entered the real estate investment management space through the acquisition of Harrison Street.
Basalt manages more than $8.5bn (€7.49bn) of infrastructure assets in North America and Europe, with offices in London and New York.
It was created in 2016 when infrastructure group Balfour Beatty sold its investment management arm to the management team.
The company focuses on mid-market infrastructure equity investments across the utility, transportation, energy/renewables and communications sectors.
Colliers acquired the 75% stake from Basalt’s founders and an unnamed “significant third-party financial investor”.
The senior leadership team will retain 25% of the equity and will continue to lead the organisation under Colliers’ partnership model, which has seen Harrison Street continue to operate under its own brand.
Basalt will also admit four additional members of its senior leadership team to the partnership.
“Partnering with Basalt’s impressive leadership team builds upon our success with Harrison Street and complements the rest of our investment management platform,” said Zach Michaud, co-CIO of Colliers.
“Infrastructure, an asset class which we know well, has high barriers to entry, low volatility and strong tailwinds. It is also a segment that will see increased investor allocations, especially for high-quality investment platforms like Basalt and Harrison Street.”
Rob Gregor, co-founder and managing partner of Basalt, said: “Our partnership with Colliers strengthens Basalt for the long term and enhances our ability to continue delivering superior investment returns for our investors.
“Colliers is a permanent-capital strategic partner that gives our partners, professionals and investors stability and increased alignment over the long term.
“The relationship will also strengthen our global capabilities, offer unique market knowledge and relationships, and create important synergies to accelerate our growth.”