Real estate and middle-market corporate strategies alternative investment firm Post Road Group has completed a deal to sell a passive, minority ownership interest to Capital Constellation.
Terms of the deal were not disclosed, but the transaction follows the close of its second credit offering Post Road Special Opportunity Fund II at more than $300 million.
As for Capital Constellation, a group of global institutional investors whose portfolio is managed by the $28 billion firm Wafra, it too has grown into a multi-billion-dollar investment platform by investing in nine alternative asset managers across North America and Europe. The firm also recently expanded its institutional investor partnerships with the addition of New York State Common Retirement Fund in late December.
President of Capital Constellation Daniel Adamson said, “We are pleased to partner with Post Road at this important point in its evolution, while further advancing Constellation’s strategy of investing in dynamic investment managers and supporting their growth by promoting peer-to-peer collaboration among leading institutional investors and investment managers.”
The investment by Capital Constellation aligns with its strategy to back “rising entrepreneurial investment managers” with an eye toward establishing the next generation of private equity and alternative investment managers.
The deal allows the Stamford, CT-based Post Road to build upon its established track record of investing across real estate, corporate credit, real estate credit, and structured equity. Post Road’s investment processes, management, and day-to-day operations will remain unchanged.
“We are excited to enter this next phase of Post Road’s evolution with the support of Constellation, a global leader in investment management and well-recognized partner to rising alternative asset managers,” said Michael Bogdan, co-managing partner of Post Road, which has completed roughly $1.5 billion in investments since its founding in 2015. “This relationship enables our Firm to scale our real estate, real estate credit, and corporate credit strategies with significant resources and reach as we seek to continue to develop unique product offerings and generate attractive returns for investors globally.”
The capital influx will support the firm’s continued growth in its business and operations. Constellation’s strategic and financial support will allow Post Road to capitalize on outstanding growth and investment opportunities the team sees in the market, according to Post Road Co-Managing Partner Kevin Davis.
Post Road’s corporate credit and structured equity platform invests in high-growth businesses and special situations across the telecommunications, media, technology, and business services sectors, including telecom infrastructure projects. The firm’s real estate credit platform provides construction financing and bridge loans to third-party developers and owners, and Post Road’s multifamily platform owns, operates, and develops multifamily assets across the U.S.
“Post Road is a differentiated alternative manager backed by an established team of investment professionals with specialized expertise in real estate, credit and TMT, critical and high-demand segments of our global economy,’ added Wafra CIO Adel Alderbas, in a statement. “We believe there is significant potential in these areas, and we look forward to a rewarding partnership with the Post Road team.”