Tunbridge Partners, a new firm backed by private equity consortium, has been created to invest in real estate investment management companies.
Funded with $500m (€446m) from Quantum Strategic Partners, advised by Soros Fund Management, and Pine Brook, the new company will take minority stakes in real estate managers and provide strategic and operational support.
Tunbridge is being advised by consultancy firm Hodes Weill, whose management are becoming investment partners.
The new company will typically invest in managers with around $3bn to $10bn of assets under management.
As well as Quantum and Pine Brook, US-based public and corporate pension plans are set to invest in Tunbridge.
Hodes Weill partner Will Rowson told IP Real Estate there is interest from investment managers in the strategy.
“We’ve carried out research beforehand and there’s interest in the market for it,” Rowson said.
“Investment managers may need equity for geogpraphic expansion, replacement of retiring partners or to have seed capital or alignment for their future vehicles.”
William Spiegel, managing director at Pine Brook, said the real assets sector is the “fastest growing asset class for institutional allocations”.
“As the investment industry continues to expand and mature, managers require capital to address a range of strategic objectives.”
Brian Finn and Sean Gallary have been appointed chairman and portfolio manager, respectively. The pair previously invested in 21 hedge fund managers for former Credit Suisse Asset Management Finance.