MassMutual’s buyer real estate platform is worth 50 billion US Dollars. The US target has assets under management of 11 billion US Dollars.
Barings, a real estate investor with assets under management more than 50 billion US Dollar worth, acquired US competitor Artemis Real Estate Partners. The buyer’s real estate debt activity in North America, Europe and Asia Pacific is of above 28 billion (see here the press release).
The transaction may close in 1Q24. Dechert LLP assisted Barings. Artemis hired Berkshire Global Advisors and Paul Hastings LLP.
Washington’s Artemis is born in 2009 and its assets under management are worth 11 billion. The firm invests in US real estate equity and debt for core, core plus, value add and opportunistic deals. The company consistently achieved strong returns over several economic cycles, utilising its extensive network of operating partners across the US.
Deborah Harmon, co-foundress and co-ceo of Artemis, said: “Barings’ global platform and our shared commitment to aligning our interests with those of our investors make the company the ideal partner to build on our proven record of investment success. We will create a more powerful platform for our investors as a Barings company, preserving our culture and creating new opportunities for our team. We are deeply grateful to our investors for the past 15 years and look forward to continuing our partnership as a force multiplier for performance and purpose.”
Alex Gilbert, co-ceo of Artemis, added: “Today’s announcement is a natural evolution of our ten-year history of building successful teams together. We are excited to join forces with Barings, combining our extensive relationships and their strong infrastructure to create an even stronger investment platform that will significantly increase access to capital across the risk spectrum for our broad base of operating joint venture partners in the US”.
Penny Pritzker, foundress and chairwoman of PSP Partners and co-foundress of Artemis, said: “Deb Harmon and Alex Gilbert are extraordinary leaders, and I am proud to have been their partner for the past 15 years. During this time, the incredible team at Artemis created remarkable opportunities for our investors. Artemis’ partnership with Barings is exciting and the new platform will be a powerhouse in promoting performance and purpose on an even greater scale and impact”.
Experienced leaders make Barings’ real estate team. These professionals have execution track records spanning multiple real estate product types, including multifamily, industrial, office, retail, hospitality, senior housing and medical office properties. The firm established itself as one of the industry’s leading platforms for capitalising on emerging entrepreneurs and managers.
John Ockerbloom, Head of Barings U.S. & European Real Estate, commented: “We believe Artemis’ team and capabilities will be instrumental in our US real estate equity business, allowing us to jointly accelerate our growth and exploit market opportunities for the benefit of our investors. With Artemis within the Barings group, as a key component of our platform, we will further strengthen our ability to seek and unlock relative value across the risk spectrum and deliver the best results for investors”.
Barings, a global firm, belongs to US insurance giant MassMutual and has assets under management worth more than 421 billion US Dollars. Mike Freno, chairman and ceo of Barings, added: “We are excited to welcome Barings to the Artemis team, with whom we share a deep commitment to serving investors as a trusted partner. We see real estate equity investment as a key pillar of our long-term strategy and believe this acquisition will significantly enhance our capabilities. We are excited to combine our complementary platforms to create additional opportunities on behalf of our investors”.
Eric Partlan, cio of MassMutual, concluded: “We believe this strategic acquisition will strengthen Barings’ equity capabilities in US real estate and will provide MassMutual with additional investment opportunities in new and diversified assets within our General Investment Account as well as helping to maximise the value we provide to our policyholders”.
