Bluerock, a prominent institutional alternative asset manager, has announced its entry into a definitive agreement for a strategic partnership and a minority interest investment in The Townsend Group. This investment is part of a larger acquisition initiative led by The Riverside Company, which is facilitating the purchase of Townsend from Aon.

Townsend’s Global Reach and Expertise

The Townsend Group is recognized as a leading provider of global real estate and real asset investment advisory services. With over 110 employees spread across key global financial hubs in Cleveland, London, Hong Kong, and San Francisco, Townsend manages real assets exceeding $218 billion. The firm’s services are crucial to a diverse client base that includes public and private pension plans, insurers, sovereign wealth funds, endowments, and foundations.

Enhancing Bluerock’s Capabilities

Bluerock’s CEO, Ramin Kamfar, emphasized the complementary nature of the partnership, stating, “Townsend’s long-standing leadership in the institutional real assets space is a natural fit with Bluerock’s pioneering role in delivering institutional-quality alternative investments to individual investors over the last 22 years.” This collaboration aims to deepen the intellectual capital of both entities and develop innovative investment solutions for retail investors.

Expansion of Townsend’s Distribution Channels

With this transaction, Bluerock intends to enhance Townsend’s distribution capabilities within the U.S. private wealth channel, aiming to introduce Townsend’s institutional-grade investment advisory to high-net-worth individuals. Anthony Frammartino, president of Townsend, who will assume the roles of chairman and CEO post-transaction, expressed enthusiasm about leveraging Bluerock’s established presence in the alternatives market to reach a broader audience.

Financial and Legal Advisors

The financial advisory roles were filled by Berkshire Global Advisors L.P. for the buyer consortium, while Dechert LLP provided legal counsel to Bluerock. Aon utilized the financial expertise of Moelis & Company LLC and legal guidance from Kirkland & Ellis.

This strategic move by Bluerock and The Townsend Group represents a significant development in the landscape of global investment management, broadening the scope and depth of their market influence and operational capabilities.

  Alternative Asset Management, Bluerock, global real estate investment, private wealth management, strategic partnership, The Townsend Group