Credit Suisse Vets, Hodes Weill Partner on New Firm

NEW YORK CITY—A pair of Credit Suisse veterans is partnering with Hodes Weill & Associates on a new firm that will make minority equity investments in real estate fund managers. Known as Tunbridge Partners, the new company has been launched with approximately $500 million of capital from an investor group led by Pine Brook and Quantum Strategic Partners, an investment fund managed by Soros Fund Management. Several US-based public and corporate pension plans are also expected to make investments.

PERE reported that Tunbridge will invest in real asset fund managers with $1 billion to $10 billion of assets under management. Leading the new firm are chairman Brian Finn and portfolio manager Brian Gallary, both formerly of Credit Suisse affiliate Asset Management Finance.

“The partnership with Hodes Weill provides unique access to the market and the ability for Tunbridge to support managers in achieving their growth plans,” Finn says. He brings more than 30 years' experience in financial services to Tunbridge; his positions at Credit Suisse also include co-president of Credit Suisse First Boston and CEO of Credit Suisse USA. Currently he's a strategic advisor to KKR and a member of the boards of Duff & Phelps, BlackRock Capital Investment Corp. and the Scotts-Miracle Gro Co.

Before joining Tunbridge, Gallary was a managing director at ORIX USA Asset Management, where he was responsible for investing ORIX USA's capital in asset management activities, including strategic acquisitions. Prior to his time with AMF, he was in the investment banking group of Sandler O'Neill & Partners.

Structured as a perpetual life investment company, Tunbridge will make investments, generally structured as minority equity interests, in investment managers focused on real estate and real assets across property sectors, strategies and geographies. Along with providing capital, Tunbridge will provide strategic and operational support to its partner firms, including access to global institutional coverage and distribution services through its affiliation with Hodes Weill.

The investment focus of Tunbridge fills a void in the private equity real estate industry, Douglas Weill, managing partner at Hodes Weill, told PERE. “There's a really strong need from managers for this type of capital, and given our advisory and distribution capabilities, we can help these managers grow,” he said. Managers that are backed by Tunbridge have the option of using Hodes Weill for institutional coverage and capital raising, PERE reported.