AXA buys $9.4b U.S. real estate debt business from Quadrant

AXA Investment Managers – Real Assets has plans to significantly expand its global debt platform through the acquisition of one of Quadrant Real Estate Advisors’ U.S.-focused lines of business, including a dedicated investment team and the management of $9.4 billion of U.S. commercial real estate loan mandates.

“The acquisition of this market-leading U.S. team, together with the significant commercial real estate senior loan mandates, will enable us to expand the leadership of our real estate debt platform from a European to a global level,” said Isabelle Scemama, CEO of AXA IM – Real Assets.

The transaction, which is under contract and is pending regulatory approval, will firmly position AXA IM – Real Assets as a global leader in commercial real estate debt, bringing its loan portfolio to $20.5 billion, and its total debt platform including infrastructure finance to approximately $28 billion. As part of the transaction, 24 members of Quadrant, including five of the founding partners (the Lift-Out Team), will join AXA IM – Real Assets. Quadrant will continue to manage various commercial real estate debt strategies in the United States, Great Britain and Ireland.

The Atlanta-based Lift-Out Team will bring deep market expertise and a 20-year track record in the U.S commercial real estate debt market, complementing the existing AXA IM – Real Assets’ team, which has a 13-year leading position in the European commercial real estate debt market. This combination will provide AXA IM – Real Assets the capacity to offer investment solutions to clients through different debt products and across many jurisdictions and a strong foundation for continued growth in the United States, where it has invested more than $1.1 billion in commercial real estate loans since 2014.

The transaction forms part of AXA IM – Real Assets’ ongoing strategy to expand internationally and, particularly, in the United States.