GWL acquiring Guggenheim Real Estate



GWL Real Estate Advisors U.S. is acquiring real estate manager Guggenheim Real Estate from Guggenheim Investments, said Michele Walkau, senior vice president, corporate services for GWL Realty Advisors, in an email.

Terms of the deal — which affects Guggenheim’s commercial real estate private equity business — are not being disclosed. The transaction is expected to close in the fourth quarter.

Guggenheim Real Estate’s $1.8 billion in assets under management, which will be combined with GWL’s real estate investment management and operating business, EverWest Real Estate Investors. GWL acquired EverWest in February. The combined business will have total gross assets of $3.6 billion and will be led by EverWest President Rick Stone.

Joseph Mahoney, managing principal, and members of his team at Guggenheim Real Estate will join GWL and continue to oversee the management of Guggenheim’s existing real estate funds. Specifics on the number of people moving to GWL could not be obtained.

“We are very excited that Mr. Mahoney and his leadership team are joining us,” Ms. Walkau said.

GWL executives expect to share more details after the close, she added.

Jerry Miller, president of Guggenheim Investments, said in a news release that the sale is part of Guggenheim Investments’ strategy ” to maintain focus on the active investment capabilities that our global insurer, institutional and individual clients demand across fixed-income, corporate credit and alternatives.”

“We remain committed to growing assets under management in our retained real estate lines of business,” he said.

Gerard Carney, Guggenheim managing director, said in an email that the transaction is limited to Guggenheim’s commercial real estate private equity business, which amounts to less than 1% of Guggenheim’s assets under management.

“Post-transaction, Guggenheim Investments will continue to manage over $40 billion in real estate assets,” Mr. Carney wrote.

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