Mariner looks to sell funds to Real Estate Capital Partners
Investors in three Mariner Financial funds are to vote on installing Real Estate Capital Partners (ReCap) as the new manager.
The meeting is on November 7 and ReCap is expected to become the responsible entity for the Mariner American Property Income Trust, Mariner Infrastructure Trust No.1 and the Mariner Property Trust No.2. ReCap plans to acquire the funds from Mariner, which is recommending a ‘yes’ vote at the Sydney meeting. It has offered $2.5 million for the funds.
ReCap chief executive officer Andrew Saunders said the price paid was realistic in the current market environment. He expected a number of similarly priced transactions to occur as the real estate funds management industry consolidates.
The three funds have 7,500 institutional and retail investors and more than $550 million in funds under management. Saunders said the acquisition of the management of the trusts provided his company with a number of synergies.
“Each of the trusts has high quality, stable incoming producing assets and their investor client base is a valuable addition to ReCap,” he said.
“The investment also ensures our overall business becomes scale efficient in terms of resources.”
The acquisition of the funds will lift ReCap’s funds under management to $650 million and grow its investor base to 9,500 members.
“Having now completed due diligence, we believe the financial and asset management of each of these trusts can be enhanced,” Saunders said.
“We already have the operating infrastructure to achieve this through existing in-house capabilities or outsourcing arrangements.”
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
