Asian asset manager makes acquisition to support Australian private credit business
Global real asset manager CapitaLand Investment (CLI) is set to acquire a key business from Wingate as part of its growth strategy in the Asia-Pacific region.
It has announced the acquisition of Wingate’s property and corporate credit investment management business, with Wingate’s managing director, Nick Jacobson, to take over its executive leadership.
He will succeed founder Farrel Meltzer, who will remain involved with the company as a non-executive director and will serve as a senior adviser to CLI in Australia and its global private credit business.
The acquisition is expected to support CLI’s growing private credit business and its portfolio in Australia, with Wingate bolstering CLI’s extensive proprietary deal origination networks and enhancing access to more institutional and private investors.
Meltzer noted Wingate employees, co-investors and clients will benefit greatly from the new partnership.
“This partnership will bring fresh international perspectives, create seamless cultural and operational synergy, and further elevate the platform’s already high standards of co-investor management,” he said.
Jacobson added the firm is delighted to work with CLI towards its growth ambitions.
“The growth of Wingate with the backing of CLI is a truly industry-transforming prospect for what can be delivered to local and global institutional investors,” he said.
“The combination of Wingate and CLI will further strengthen Wingate’s market standing as a leader in Australian real estate private credit and to becoming the fund manager of choice for institutional investors seeking exposure to the stable and attractive Australian real estate sector.”
Wingate has executed over 350 transactions worth more than $20 billion in real estate value in the Australian market.
Commenting on the acquisition, Paul Tham, group chief financial officer at CLI, highlighted Wingate’s strong track record, market positioning and senior leadership team.
“Wingate’s private credit capabilities complement CLI’s own private funds platform, and will enable us to collaborate to create greater value for our capital partners in Australia and beyond,” Tham said.
As at 30 September 2024, CLI had S$134 billion of assets under management, as well as S$102 billion of funds under management held via six listed real estate investment trusts and business trusts. It also holds a suite of private real asset vehicles that invest in thematic and tactical strategies.
The deal is expected to be completed in the coming months, with final transaction close subject to the fulfilment of conditions, including regulatory approval.
Last month, CLI also welcomed two senior hires from Barrenjoey Capital Partners in newly created roles to support its growth in the Australian market. Angelo Scasserra was named chief executive, CLI Australia, with Rahul Bharara coming on board as chief investment officer.
According to CLI’s Tham, Australia remains one of its focus markets as it aims to accelerate geographical diversification efforts.
“Australia will play a greater role in contributing to CLI’s FUM as we strive towards our S$200 billion FUM target in 2028. CLI has committed to invest up to $1 billion (about S$867 million) to grow our FUM in the country,” he said.
“As we strengthen our position as a leading global real asset manager, we will continue to seek opportunities to scale our Australian presence through our listed funds, private funds, as well as our commercial and lodging management businesses to drive fee income growth for CLI.”
Meanwhile, although Wingate’s principal investment strategies, including portfolio companies such as ORDE Financial, Fifo Capital, and Talaria Asset Management, are excluded from the acquisition, it announced these assets will be spun out into a new investment firm, Fancourt Capital Group (FCG).
Meltzer will chair FCG, with Yoni Cukierman, current managing director of Wingate’s principal investment strategy, taking the role of CEO.
AUTHOR
Rhea Nath
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