Colliers to Invest in Basalt Infrastructure Partners

NEW YORK, NY – Colliers has entered into an agreement to invest in the transatlantic infrastructure investment management firm, Basalt Infrastructure Partners LLP.

Basalt Infrastructure Partners has more than $8.5 billion in assets under management, and offices in London and New York. The investment management firm specializes in mid-market, infrastructure equity investments in the utility, transportation, energy/renewables and communications sectors across Europe and North America.

The transaction is expected to close in the second half of 2022, and is subject to customary closing conditions and approvals. Financial terms of the investment were not disclosed.

As a part of the transaction, Colliers will acquire 75% of Basalt Infrastructure Partners from the firm’s founders and a third-party financial investor. Basalt Infrastructure Partners’ senior leadership team will retain 25% of the equity and it will continue to lead the organization under Colliers’ partnership model. In addition, Basalt Infrastructure Partners will admit four members of its senior leadership team to the partnership.

Once the transaction is complete, Colliers anticipates the annual run rate of management fee revenue to be between $65 million and $70 million, adjusted EBITDA of $35 million to $40 million and operating results to be significantly accretive.

Since its founding in 2011, the investment management firm has delivered superior returns to investors through its flagship series of closed-end funds. The company’s investors include large public and corporate pension plans, sovereign wealth funds, endowments, insurance firms and family offices.

“Partnering with Basalt’s impressive leadership team builds upon our success with Harrison Street and complements the rest of our investment management platform,” states Zach Michaud, co-chief investment officer at Colliers. “Infrastructure, an asset class which we know well, has high barriers to entry, low volatility, and strong tailwinds. It is also a segment that will see increased investor allocations, especially for high-quality investment platforms like Basalt and Harrison Street. The opportunity to leverage everything we have to offer while providing our investors with greater choice when it comes to differentiated investment products is very compelling.”

“This is another example of an experienced and entrepreneurial investment team choosing to partner with Colliers,” says Jay Hennick, chairman and CEO of Colliers. “Basalt’s culture aligns perfectly with our own and we are delighted to welcome this world-class team to our organization.”

“Our partnership with Colliers strengthens Basalt for the long term and enhances our ability to continue delivering superior investment returns for our investors,” states Rob Gregor, Basalt co-founder and managing partner. “Colliers is a permanent capital strategic partner that gives our partners, professionals, and investors stability and increased alignment over the long term.”

Gregor adds, “The relationship will also strengthen our global capabilities, offer unique market knowledge and relationships, and create important synergies to accelerate our growth. Colliers’ entrepreneurial culture, decentralized management style, significant inside ownership and exemplary investment record over more than two decades were also important factors. On behalf of our entire team, we look forward to leveraging these advantages as we continue to build Basalt in the years to come.”

For this transaction, Basalt Infrastructure Partners retained Berkshire Global Advisors as its financial advisor.