A consortium of institutional investors led by Tunbridge Investment Partners has bought a stake in New York-based real estate fund manager and developer Savanna.
Tunbridge, an affiliate of real estate advisory firm Hodes Weill & Associates, specialises in taking minority stakes in mid-sized real estate investment managers.
The consortium, TK Partners, is capitalised in part by Kudu Investment Management, which also specialises in investing in investment management firms.
Savanna employs more than 30 professionals and has invested over $4bn (€3.51bn) through a series of investment vehicles since it was founded in 1992.
It has more than 80 global investors, including public and private pension funds, insurance companies, sovereign wealth funds, high-net-worth family offices, foundations, and wealth management companies.
The company said the investment by TK Partners was used to “further strengthen the platform, funding working capital and various platform, investment, staffing, and growth initiatives”.
Chris Schlank, founder and managing partner of Savanna, said: “This permanent capital investment is a significant milestone for Savanna and demonstrates the franchise value that the firm has established over its 26 years in business.
“This capital will enable us to continue to invest in our platform and people, and most importantly, to invest more in our existing and future investment vehicles, alongside our institutional partners.”
Nick Bienstock, co-managing partner of Savanna, said: “While there will be no changes to Savanna’s strategy, investment processes or day-to-day operations, and Savanna will continue to be overseen by its founders and principals, we expect that we will be able to leverage the industry expertise and relationships of our new partners.
“The investor group, including Tunbridge, understands our business and is a highly strategic partner for Savanna.”
Doug Weill, managing partner of Hodes Weill & Associates, said: “We have known the founders and principals of Savanna for over 20 years and have great respect for the business they have built.
“Their investment capabilities and track record are best-in-class and will continue to position the firm as a partner of choice for institutions seeking access to property investments in New York City.”
David Hodes, managing partner of Hodes Weill & Associates, said: “We are actively evaluating additional opportunities to grow the Tunbridge platform and believe that our investment thesis is particularly compelling as global institutional investors continue to increase their allocations to real estate.”
Earlier this year, Blackstone’s hedge fund business acquired a minority stake in another US real estate investment manager, Rockpoint Group.
