US insurance group New York Life is entering real estate in Europe, announcing an agreement to take a 40% stake in Tristan Capital, based in London and active across Europe. The stake will be taken by its Candriam affiliate.
In a release Friday, Candriam Investors Group, a pan-European multi-specialist asset manager running €12bn of assets, announced a strategic partnership with Tristan Capital Partners whic manages some €9.1bn of property assets. Candriam has acquired a 40% equity stake and a first option to increase it in the future.
"This strategic partnership represents Candriam’s first move into European private equity real estate investment management," the firm said. "The strategic partnership with Tristan enables Candriam to add real estate, a major asset class which continues to attract strong institutional investor demand, to its multi-specialist offerings."
Candriam’s existing offerings include fixed income, equities, alternatives, sustainable investments and asset allocation strategies.
Tristan, founded by Ric Lewis and his team last decade, is a pan-European private equity real estate boutique now employing 105 professionals in eight locations. The firm offers a research-led approach to investing capital, and has an 18-year track record, with total investments in that time approaching €15bn. "Tristan will retain existing management and investment autonomy while benefiting from the operating and financial resources, distribution network, and scale of Candriam and New York Life," the release said.
New York Life IM CEO Yie-Hsin Hung said the group is fully supportive of Candriam’s expansion into the real estate market with Tristan. "The boutiques within our growing global asset management business offer a powerful, diverse range of insights and differentiated strategies to our clients, and this strategic partnership further demonstrates our commitment to expanding our alternatives capabilities."
Candriam CEO Naïm Abou-Jaoudé, also chairman of New York Life Investment Management International, commented : "As we grow our investment offerings and operations in Europe, we continue to seek strategic relationships and acquire complementary capabilities. Tristan Capital Partners is a true expert real estate manager. They have built an impressive track record and a strong and loyal client portfolio. Both our firms share the same values and strong corporate culture... I am convinced that this strategic partnership will allow Tristan to further accelerate growth and capitalise on the growing demand for real estate investments."
Lewis said the strategic partnership with Candriam places Tristan in an even stronger position to pursue its current and future business plan and to offer more attractive opportunities, products and strategies to clients. "With its complementary multi-specialist model, Candriam provides an excellent strategic fit and an opportunity to combine our specialist European market knowledge with a leading global investment platform. Candriam and New York Life are strong partners for Tristan, our clients and our future growth. Their culture of investment management excellence and commitment to exemplary investment performance, client service and the development of new strategies and capabilities to serve clients’ emerging needs were the factors that ultimately led to this strategic partnership."