Professional services firm and investment management company Colliers has has entered into an agreement to make a strategic investment in Basalt Infrastructure Partners, a transatlantic infrastructure investment management firm with more than $8.5 bn (€7.5 bn) of assets under management.
The transaction is subject to customary closing conditions and approvals and is expected to close in the second half of 2022. Financial terms were not disclosed.
With offices in London and New York, Basalt specialises in mid-market, infrastructure equity investments across the utility, transportation, energy/renewables, and communications sectors in Europe and North America.
As part of the transaction, Colliers will acquire 75% of Basalt from its founders and a 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.
Basalt will also admit four additional members of its senior leadership team to the partnership. Once the transaction is completed, Colliers expects the annual run rate of management fee revenue to be between $65 and $70 mln, adjusted EBITDA of $35 to $40 mln, and operating results to be significantly accretive.
Founded in 2011, Basalt's closed-end funds are backed by some of the world’s largest public and corporate pension plans, sovereign wealth funds, endowments, insurance firms, and family offices, according to the firm.
Zach Michaud, co-chief investment officer of Colliers, said: 'Partnering with Basalt’s impressive leadership team builds upon our success with Harrison Street and complements the rest of our investment management platform.
'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.
'The opportunity to leverage everything we have to offer while providing our investors with greater choice when it comes to differentiated investment products is very compelling.'
'This is another example of an experienced and entrepreneurial investment team choosing to partner with Colliers,' said Jay Hennick, chairman and CEO of Colliers. 'Basalt’s culture aligns perfectly with our own and we are delighted to welcome this world-class team to our organisation.'
Added Rob Gregor, Basalt co-founder and managing partner: 'The relationship will also strengthen our global capabilities, offer unique market knowledge and relationships, and create important synergies to accelerate our growth.
'Colliers’ entrepreneurial culture, decentralized management style, significant inside ownership, and exemplary investment record over more than two decades were also important factors. On behalf of our entire team, we look forward to leveraging these advantages as we continue to build Basalt in the years to come.'
Berkshire Global Advisors acted as financial advisor to Basalt.
