Slate Asset Management Announces Final Close of Slate Real Estate Capital I to Complete US$2.33 Billion Portfolio and Platform Acquisition from Annaly Capital Management, Inc.
Monday, July 26, 2021
The transaction further scales Slate Asset Management’s investment platform to include flexible debt capital solutions in North America
Slate Asset Management (“Slate”), a global alternative investment platform focused on real estate, today announced the final close of Slate Real Estate Capital I (“SREC I”). SREC I today also completed the first closing with respect to the previously announced US$2.33 billion acquisition of the Commercial Real Estate Business of Annaly Capital Management, Inc. (“the acquisition” or “the transaction”). The portion of the portfolio being acquired by Slate Grocery REIT (TSX: SGR.UN / SGR.U) is still pending and is expected to close in the third quarter of 2021.
SREC I is Slate’s inaugural debt focused investment vehicle. The fund was oversubscribed with third-party capital commitments from a global group of new and existing institutional investors, including a preferred equity investment from Goldman Sachs Asset Management’s Vintage and Vintage Real Estate Partners Funds. This investment further builds on Slate’s existing partnership with Goldman Sachs Asset Management.
“Our primary focus at Slate is to create long-term value for our investors, and we are very pleased to be deepening and expanding our relationships with valued partners like Goldman Sachs Asset Management and other global institutional investors,” said Blair Welch, Co-founding Partner of Slate. “With the initial close of this transaction, our platform and team are now set up to capitalize on compelling and creative investment opportunities across the entire capital stack.”
“By bringing to bear scale and in-depth underwriting capabilities, Slate and the Vintage Funds were able to structure a multi-faceted investment and acquire a high-quality portfolio of real estate credit positions that combines downside protection and attractive return potential,” said Sean Brenan, Managing Director at Goldman Sachs Asset Management.
The acquisition will further expand Slate’s investment capabilities, enabling the firm to execute bridge and transitional lending, acquisitions of existing loans, investments in debt securities and provide flexible liquidity solutions to strong sponsors and assets.
Slate is welcoming a group of new team members as part of the transaction and has hired additional professionals to ensure a seamless transition of the portfolio. The team members will join Slate’s offices in Chicago, New York, Dallas and Los Angeles.
BMO Capital Markets served as financial advisor and Goodwin Procter LLP and McCarthy Tétrault LLP as legal advisors to Slate during the transaction.
About Slate Asset Management
Slate Asset Management is a global alternative investment platform focused on real estate. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform has a range of investment strategies, including opportunistic, value add, core plus and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
About Goldman Sachs Asset Management Vintage Funds
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1998, the Vintage Funds within Goldman Sachs Asset Management have been innovators in the secondary market and have invested over $40 billion of capital since inception. The Vintage Funds provide liquidity, capital and partnering solutions to private market investors and managers worldwide across private equity strategies. Follow us on LinkedIn.
Slate Asset Management