Venn Partners LLP, an investment manager in European real estate private debt, has entered into partnership with Singapore-based ARA Asset Management Limited, a global integrated real assets fund manager, to expand its investment management business in the real assets credit markets in Europe.
Subject to regulatory approvals, the transaction is expected to complete in the first quarter of 2020.
The expanded business, to be known as ARA Venn, will focus on real assets credit markets in Europe.
Founded in 2009, Venn is a specialist investment manager in real assets private debt with combined AUM and investment mandates of over £5 billion.
Its current strategies comprise a UK government backed lending programme into private sector rental housing, high-yield strategies in UK and European commercial real estate debt, and residential mortgage finance in the UK and the Netherlands.
Since early 2018, ARA has set its sights on the European real assets market and the transaction is its second business partnership in Europe following the creation of ARA Dunedin, which was set up in July 2019 with Dunedin Property Asset Management Limited to invest in and manage real estate assets in the UK.
Under the transaction, ARA (through its subsidiary ARA UK Asset Management Limited) will acquire a majority equity stake in Venn and replace Siem Industries as Venn’s corporate partner. The remaining equity in Venn will continue to be held by its management team.
“We are excited to enter this partnership for growth with such an experienced partner, and which is built upon shared corporate values and a vision for expansion. We look forward to harnessing these strengths into an offering which provides compelling loan product for both investors and borrowers,” said Gary McKenzie-Smith, joint Managing Partner of Venn.
“We are delighted to announce the partnership with ARA, as a combined team we benefit from complimentary skill sets and the union responds to both our investor and borrower clients who are seeking broader relationships with their core business partners,” said Paul House, joint Managing Partner of Venn.