TORONTO and LONDON and NEW YORK, Jan. 24, 2022 (GLOBE NEWSWIRE) — Colliers (NASDAQ and TSX: CIGI), a leading diversified professional services and investment management firm, announced today that it has entered into an agreement to perform a strategic investment in Basalt Infrastructure Partners LLP (“Basalt”), a leading transatlantic infrastructure investment management firm with over $8.5 billion in assets under management. The transaction is subject to customary closing conditions and approvals and is expected to close in the second half of 2022. Financial terms were not disclosed.
With offices in London and New York, Basalt specializes in middle-market infrastructure equity investments in the utilities, transportation, power/renewable energy and communications sectors in Europe and the Americas. North. Since its inception in 2011, Basalt has consistently delivered superior returns to investors through its flagship series of closed-end funds and counts among its investors some of the world’s largest public and corporate pension plans, sovereign wealth funds, endowment funds, insurance companies and families. desks.
As part of the transaction, Colliers will acquire 75% of Basalt from its founders and a major third-party financial investor. The management team will retain 25% equity and continue to lead the organization under Colliers’ unique partnership model. Basalt will also admit four additional members of its management team to the partnership. Upon completion of the transaction, Colliers expects annual management fee revenue to be between $65-70 million, adjusted EBITDA of $35-40 million and significantly accretive operating results. .
“Partnering with Basalt’s impressive management team builds on our success with Harrison Street and complements the rest of our investment management platform,” said Zach Michaud, Co-Chief Investment Officer of Colliers. “Infrastructure, an asset class we know well, has high barriers to entry, low volatility and strong tailwinds. It is also a segment that will see an increase in investor allocations, in particularly for high-quality investment platforms like Basalt and Harrison St. The opportunity to leverage all that we have to offer while providing our investors with greater choice in differentiated investment products is very compelling. »
“This is another example of an experienced and entrepreneurial investment team choosing to partner with Colliers,” said Jay Hennick, chairman and CEO of Colliers. “Basalt’s culture aligns perfectly with ours and we are thrilled to welcome this world-class team to our organization.”
“Our partnership with Colliers strengthens Basalt over the long term and enhances our ability to continue to deliver superior investment returns to our investors. Colliers is an ongoing strategic capital partner that provides our partners, professionals and investors with stability and increased alignment over the long term,” said Rob Gregor, co-founder and managing partner of Basalt. “This relationship will also strengthen our global capabilities, provide unique market knowledge and relationships, and create important synergies to accelerate our growth. Colliers’ entrepreneurial culture, decentralized management style, significant internal shareholding and exemplary investment history spanning more than two decades were also important factors. On behalf of our entire team, we look forward to leveraging these benefits as we continue to build Basalt in the years to come.
In connection with this transaction, Berkshire Global Advisors acted as financial advisor to Basalt.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified investment management and professional services firm. With operations in 65 countries, our more than 15,000 enterprising professionals work together to provide expert advice to occupiers, owners and property investors. For more than 26 years, our experienced leadership with significant insider ownership has generated compound annual returns of nearly 20% for shareholders. With annualized revenues of $3.6 billion ($4.0 billion including affiliates) and $46 billion in assets under management, we are maximizing real estate potential and accelerating the success of our customers and our staff. Learn more about company.colliers.comTwitter @Necklaces Where LinkedIn.
Basalt is the exclusive investment advisor for the Basalt funds, comprising Basalt I, Basalt II and Basalt III. Basalt Funds are equity infrastructure investment funds that focus on middle-market investments in utility, power, transportation and communications infrastructure in North America and Europe.
For more information, please visit www.basaltinfra.com.
This press release contains forward-looking statements. Forward-looking statements include the company’s outlook for financial performance and statements regarding current goals, beliefs, strategies, objectives, plans or expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from any future results, performance or achievements contemplated in the forward-looking statements. These factors include: economic conditions, particularly with respect to commercial and consumer credit conditions and consumer spending, particularly in regions where our operations may be concentrated; commercial real estate values, vacancy rates and general financial liquidity conditions for real estate transactions; pricing and risk assumption trends for commercial real estate services; the effect of large movements in average capitalization rates on different types of properties; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operational performance; competition in the markets served by the Company; the ability to attract new customers, retain major customers and renew associated contracts; the ability to retain and incentivize producers; increases in salary costs and benefits; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents compared to historical experience; the effects of changes in exchange rates against the US dollar on the Company’s Canadian dollar, euro, Australian dollar and British pound denominated revenues and expenses; the impact of pandemics on customer demand for the Company’s services, the Company’s ability to provide its services and the health and productivity of its employees; the impact of global climate change; the impact of political events, including elections, referendums, trade policy changes, immigration policy changes, hostilities and terrorism on the Company’s operations; the ability to identify and complete acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute and adapt to information technology strategies and trends; the ability to comply with laws and regulations related to our global operations, including real estate and mortgage licensing, labor and employment laws and regulations, and anti-corruption laws and trade sanctions; and changes in federal, state/provincial, or local government laws and policies that may adversely impact the business.
Additional information and risk factors are identified in the Company’s other periodic filings with Canadian and United States securities authorities (which factors are adopted herein and a copy of which may be obtained at www.sedar.com) . The forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements contained in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Adjusted EBITDA is defined as net profit, adjusted to exclude: (i) income tax; (ii) other expenses (income); (iii) interest charges; (iv) depreciation and amortization; (v) acquisition-related items (including fair value adjustments to contingent acquisition consideration, compensation expense related to contingent acquisition consideration and transaction costs); (vi) restructuring costs; and (vii) stock-based compensation expense. We use Adjusted EBITDA to assess our own operating performance and ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the overall valuation of the Company’s business and to assess acquisition targets. We present Adjusted EBITDA as a supplemental measure because we believe such a measure is useful to investors as a reasonable indicator of operating performance due to the low capital intensity of the Company’s services business. We believe this measure is a financial measure used by many investors to compare companies, especially in the services sector. This measure is not a recognized measure of financial performance under US GAAP and should not be considered a substitute for operating income, net income or cash flow from operating activities. as determined in accordance with GAAP. Our method of calculating Adjusted EBITDA may differ from that of other issuers and therefore this measure may not be comparable to measures used by other issuers.
We use the term assets under management (“AUM”) as a measure of the breadth of our investment management activities. Assets under management are defined as the gross market value of operating assets and the projected gross cost of development properties of the funds, partnerships and accounts to which we provide management and advisory services, including the capital that these funds , partnerships and accounts have the right to call investors under capital commitments. Our definition of assets under management may differ from those used by other issuers and, as such, may not be directly comparable to similar measures used by other issuers.