CBRE Group has entered into a definitive agreement to acquire a majority interest in Caledon Capital Management, a Toronto-based investment management business specializing in private infrastructure and private equity investments.

Upon closing, Caledon will be renamed CBRE Caledon Capital Management Inc. and will operate as a separate business unit under CBRE’s independently operated investment management subsidiary, CBRE Global Investors. The Caledon management team comes with deep and successful experience in infrastructure and private equity investing. Prior to Caledon, most of the management team previously worked for Canadian pension plans that are leaders in infrastructure and private equity investing. This team will continue to manage the business and will maintain significant long-term ownership.

Caledon’s team of more than 30 people in Toronto manage approximately US$7 billion of assets for institutional investors through a combination of direct investments, co-investments, secondaries and primary funds. The pending addition of Caledon will complement the suite of investment solutions offered by CBRE Global Investors and its listed equity management arm, CBRE Clarion Securities.

Closing is expected to occur later this year and is subject to regulatory approval and other customary closing conditions.

Ritson Ferguson, CEO, CBRE Global Investors, said:

“Investors are increasing their allocations to alternative investments, including real assets. Caledon’s market-leading investment solutions are a logical extension to our existing suite of real estate and infrastructure investment solutions, enhancing our position as an industry leader.”

David Rogers, Founding Partner, Caledon, said:

“CBRE’s global reach and resources will improve Caledon’s access to more and larger quality investment opportunities around the world. This will enhance our ability to continue to deliver attractive returns for our clients as infrastructure investing becomes increasingly global.”