Savanna sells minority stake to Tunbridge Investment Partners
Savanna, a New York City-based real estate investment manager, owner/operator and developer, has sold a passive, minority equity stake in its business to TK Partners, a consortium of institutional investors led by Tunbridge Investment Partners.
Tunbridge, an affiliate of real estate advisory firm Hodes Weill & Associates, focuses on making strategic, minority equity investments in real estate fund managers. TK Partners is capitalised, in part, with an investment from Kudu Investment Management, a firm that specialises in providing permanent capital solutions to leading investment managers.
Founded in 1992, Savanna has more than 30 experienced professionals, and since its inception, has invested over USD4 billion across a series of investment vehicles including its flagship value-add private equity funds. Specialising in the New York City market, Savanna is an institutional fund manager with more than 80 distinct investors from around the world, including public and private pension funds, insurance companies, sovereigns, high net worth family offices, foundations, and wealth management companies.
Proceeds from the TK Partners investment were utilised to further strengthen the platform, funding working capital and various platform, investment, staffing, and growth initiatives.
Chris Schlank, Founder and Managing Partner of Savanna, says: “This permanent capital investment is a significant milestone for Savanna and demonstrates the franchise value that the firm has established over its 26 years in business. This capital will enable us to continue to invest in our platform and people, and most importantly, to invest more in our existing and future investment vehicles, alongside our institutional partners.”
Nick Bienstock, Co-Managing Partner of Savanna, adds: “While there will be no changes to Savanna’s strategy, investment processes or day-to-day operations, and Savanna will continue to be overseen by its founders and principals, we expect that we will be able to leverage the industry expertise and relationships of our new partners. The investor group, including Tunbridge, understands our business and is a highly strategic partner for Savanna.”
Doug Weill, Managing Partner of Hodes Weill & Associates, says: “We are delighted to have the opportunity to invest with Savanna. We have known the founders and principals of Savanna for over 20 years and have great respect for the business they have built. Their investment capabilities and track record are ‘best-in-class’ and will continue to position the firm as a partner of choice for institutions seeking access to property investments in New York City.”
David Hodes, Managing Partner of Hodes Weill & Associates, adds: “Importantly, this transaction advances Tunbridge’s investment strategy and demonstrates the value that our growth capital and advisory capabilities afford real estate fund managers. We are actively evaluating additional opportunities to grow the Tunbridge platform and believe that our investment thesis is particularly compelling as global institutional investors continue to increase their allocations to real estate.”
Additional terms of the transaction were not disclosed. Hunton Andrews Kurth LLP served as legal counsel to Savanna. Skadden LLP served as legal counsel to Tunbridge and TK Partners.