EXCLUSIVE: CenterSquare acquires RCG Longview

CenterSquare Investment Management has acquired RCG Longview.

For CenterSquare, the transaction presents an opportunity to complement its existing real assets platform with a best-in-class real estate debt capability, which will enhance its client offerings and create investment synergies with its private equity real estate business. RCG Longview brings a cycle-proven 20-plus year track record, deeply experienced management team, and excellent reputation in private real estate debt, said a CenterSquare spokesperson.

For RCG Longview, the transaction presents an opportunity to broaden the firm’s geographic reach, both from an investment opportunity and capital-gathering perspective, and bolster capabilities with the complementary aspects of CenterSquare’s real estate research, while partnering with an organization that shares its client-oriented and collaborative culture, the CenterSquare spokesperson added.

Terms of the transaction are not being disclosed, however, CenterSquare will purchase 100 percent of RCG Longview.

Michael Boxer, a founding partner and the managing member of RCG Longview, Richard Gorsky, principal owner of RCG Longview and a member of RCG Longview's investment committee, and the rest of the members of the day-to-day investment and accounting team will remain committed to the debt business as full-time employees of CenterSquare.

The RCG Longview team will retain responsibility for managing existing and future debt investment strategies. And Boxer, Gorsky and select management team members will become partners in CenterSquare.

In addition to 14 other RCGL professionals joining CenterSquare, Boxer and Gorsky will join CenterSquare as managing directors, private real estate.

The transaction is expected to be completed by Sept. 30, 2019.

The combination of RCG Longview’s real estate debt investment capabilities with the CenterSquare real assets platform will provide the firms’ collective clients with a more robust opportunity set, and they believe clients of both firms will benefit from enhanced underwriting and investment capabilities.

RCG Longview provides debt-oriented capital solutions for owners and operators of real estate. To date, the firm has completed more than 550 transactions with a total capitalization of more than $4 billion.

From an investment perspective, the firms see an opportunity to leverage each other’s market knowledge, access to deal flow and other synergies in sourcing, managing and operating investments that will enhance both platforms.

The transaction follows a management buyout by CenterSquare from its former parent company, BNY Mellon, in January 2018. The acquisition of RCG Longview is part of CenterSquare’s long-term strategy to increase the breadth of real asset product lines through careful and selective acquisitions that complement the firm’s core competencies and align with the firm’s client-oriented and collaborative culture.

CenterSquare Investment Management is a global investment manager headquartered in the Philadelphia suburb of Plymouth Meeting, Pa. Once the transaction is completed, CenterSquare will have $12 billion in assets under management.