Real Estate Firm Colliers Acquires Basalt Infrastructure Partners

Posted on 01/24/2022

Colliers entered into an agreement to make a strategic investment in Basalt Infrastructure Partners LLP, a transatlantic infrastructure investment management firm with more than US$ 8.5 billion of assets under management. The transaction is subject to customary closing conditions and approvals and is expected to close in the second half of 2022. As part of the transaction, Colliers will acquire 75% of Basalt from its founders and Wafra. The senior leadership team will retain 25% of the equity and will continue to lead the organization under Colliers’ unique partnership model. Basalt will also admit four additional members of its senior leadership team to the partnership. Once the transaction is completed, Colliers expects the annual run rate of management fee revenue to be between $65 and $70 million, Adjusted EBITDA of $35 to $40 million, and operating results to be significantly accretive.

With offices in London and New York, Basalt specializes in mid-market, infrastructure equity investments across the utility, transportation, energy/renewables, and communications sectors in Europe and North America. Founded in November 2010 as Balfour Beatty Infrastructure Partners LLP (BBIP), Basalt is the exclusive investment advisor to the Basalt funds, comprising Basalt I, Basalt II, and Basalt III. BBIP was set up in November 2010 as an independently managed infrastructure management business focusing on secondary opportunities and is run at arm’s length to Balfour Beatty’s Investments portfolio.

The Basalt funds are infrastructure equity investment funds focusing on mid-market investments in utilities, power, transport, and communications infrastructure in North America and Europe. Balfour Beatty Infrastructure Partners LLP (BBIP) changed its named to Basalt in 2016. U.K.-based contractor Balfour Beatty plc disposed of its entire interest in Balfour Beatty Infrastructure Partners LLP to its partners (partners of the firm – Rob Gregor, Steven Lowry and Jeff Neil).

Wafra Investment Advisory Group in July 2016 acquired Balfour Beatty’s fund interest in Balfour Beatty Infrastructure Partners LP (a fund) for US$ 64.4 million. Wafra is owned by Public Institution for Social Security of Kuwait (PIFSS).

“Partnering with Basalt’s impressive leadership team builds upon our success with Harrison Street and complements the rest of our investment management platform,” said Zach Michaud, Co-Chief Investment Officer of Colliers in a press release. “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.”

In connection with this transaction, Berkshire Global Advisors acted as financial advisor to Basalt.

Colliers has annualized revenues of $3.6 billion ($4.0 billion including affiliates) and $46 billion of assets under management.

Get News, People, and Transactions, Delivered to Your Inbox