Real estate manager Proprium Capital Partners has taken over the real estate arm of BC Partners, a move that sees $1bn (€840m) in European assets and a team of 17 professionals transition to the firm.
The L&G-owned global investor is absorbing BC Partners Real Estate’s (BCPRE) team led by partners Stéphane Theuriau, Laurian Douin and Thibault Douin.
In the new partnership, Theuriau will become vice-chairman at Proprium, while Douin and Douin will be made partners. Theuriau and other team members worked with L&G’s asset management CEO Eric Adler and Proprium’s co-managing partners during their time at Morgan Stanley.
BCPRE was established in 2018 and raised around $1bn for its debut European value-add investment strategy. Assets in the portfolio include Edgar Suites, a Paris-based operating platform of new-generation short-stay apartments, and 1 Museum Street, a mixed-use scheme in London’s West End.
Founded in 2013 as a spin-out from Morgan Stanley’s real estate special situations team, Proprium manages $3.5bn (€4bn) in assets across the residential, student housing, hospitality and logistics sectors. In May last year, L&G acquired a 75% stake in Proprium.
Adler said: “This is another milestone in delivering L&G’s strategy to build scale in our private markets offering and cement our position as a leading player in international real estate. Bolstering Proprium’s team with new expertise will enable us to continue to provide an innovative and differentiated proposition that meets the long-term needs of our clients across geographies.
“Having worked together and followed this team’s successful journey over two decades, I have high confidence in our cultural compatibility and look forward to driving value for our clients together.”
Philipp Westermann, head of Europe and a co-managing partner of Proprium Capital Partners, said: “We are incredibly excited to welcome colleagues who share our DNA, ambition and culture.
“Having worked with Stéphane and some of his team since the early 2000s, I have no doubt they will add tremendous value and complement our existing capabilities. By joining forces, we will enhance our platform investing approach and deepen our European presence.”
Theuriau said: “As part of BC Partners, we have built a successful real estate strategy that continues to create value across Europe. The resilience of our portfolios through an unprecedented period for the real estate sector underscores the strength of both our model and our team, and we see significant opportunities ahead.
“Proprium shares our values and vision for the future, and we look forward to joining them to scale the Proprium platform. Together with my partners, I would like to thank BC Partners for their trust, support and collaboration.”
Raymond Svider, chairman of BC Partners, said: “As we continue our focus on BC Partners’ core strategies of private equity and credit, the time is now right for the BC Partners Real Estate platform to join forces with Proprium to enter its next chapter of growth.
“Together with Proprium, the BC Partners Real Estate team will be well positioned to continue its strong investment record and deliver sustainable value for all its stakeholders, and we look forward to participating as a partner in this future success.”
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