The merger this week of two private global financial management firms marks the latest deal in a wave of commercial real estate M&A.
Chatham Financial, a financial adviser and risk management firm, is expanding its real estate services business with the acquisition of Hodes Weill & Associates, the company announced Wednesday. The merger combines Chatham’s core business of risk hedging and debt management with Hodes Weill’s platform built on raising capital and advising on deals.
Both firms serve clients in institutional capital, private equity and sovereign wealth, but Chatham’s 14 global offices add significant scale and reach for Hodes Weill, a New York-based boutique firm with fewer than 50 employees and offices in London, Amsterdam, Tokyo and Hong Kong.
The acquisition price wasn’t disclosed.
“Hodes Weill’s specialized expertise and deep relationships with the most senior executives across real assets, as well as the institutions allocating to these sectors, will further enhance and extfinish Chatham’s global platform,” Chatham CEO Matt Henry stated in a statement.
The deal is expected to close during the second quarter, at which point, Hodes Weill will launch operating as Hodes Weill & Associates, a Chatham Financial Co. David Hodes and Doug Weill, who founded the consultancy in 2009, are joining Chatham’s executive leadership team and are expected to become significant shareholders in the private firm.
Chatham, which is headquartered outside Philadelphia, has more than 4,500 clients and a debt management platform handling $2.9T in commercial real estate loans. It’s one of the largest indepfinishent financial risk management firms and offers a technology solution that combines historical and real-time market data to support its advisory business.
Hodes Weill’s primary business revolves around raising money, with advisory services focapplyd on capital placement, funds, joint ventures and M&A.
“As momentum in institutional allocations and fund formation accelerate, the opportunity to provide differentiated capital solutions to GP clients continues to expand,” Weill stated in a statement. “This partnership enables us to further invest in our team and leverage Chatham’s global platform to capitalize on these opportunities.”
The merger is at least the third services-focapplyd bit of consolidation in the commercial real estate sector this year, which has also included more than $20B worth of REIT M&A.
Savills cut a $1.1B deal to absorb Eastdil Secured in March, adding a commercial real estate investment bank to the London-based brokerage that is otherwise focapplyd on tenant representation. Eastdil will retain its name and keep operating under its existing business model.
Toronto-based financial services giant Sun Life Financial announced plans in March to spfinish roughly $2B to take control of real estate investment firm BGO, alternative credit manager Crescent Capital Group and multifamily landlord Bell Partners.
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