CenterSquare Investment Management
Founded in 1987 Centersquare Investment Management, is one of the leading firms specializing in Real estate and infrastructure investments. It is currently headquartered in Plymouth Meeting, Pennsylvania. CenterSquare is currently owned by a partnership between its management team and private equity partner Lovell Minnick Partners and is headquartered in Philadelphia with affiliate offices in New York, Los Angeles, London, and Singapore. As of June 30, 2023, CenterSquare and its subsidiaries manage approximately $13 billion in assets on behalf of some of the world’s most well-known institutional and private investors.
What does CenterSquare Investment Management Firm Offer?
CenterSquare offers three main key services that are as follows:
1. Real Estate Investment:-
CenterSquare has a variety of opportunities when it comes to Real Estate Investments. These include the following
- Core Real Estate: High-quality, income-producing properties in prime locations. These are low-risk, stable assets with predictable cash flow that can prove to be very beneficial in the long run.
- Value Add Real Estate: Properties that need work or repositioning to increase value such as renovations, complete re-modeling, operational improvements, or better management to increase property value.
- Opportunistic Real Estate: Higher risk, higher return opportunities. Distressed properties or markets with big growth potential. However, with higher risk, and especially markets that have not reached that height yet, or stability. More active management and development are going to be required.
- Real Estate Securities: Publicly traded real estate investment trusts (REITs) and other real estate-related securities. Liquidity and diversification.
2. Infrastructure Investment:-
Along with real estate, CenterSquare provides infrastructure investment management services. These services include:
- Direct Infrastructure Investments: Investing directly in infrastructure assets such as transportation, energy, and utilities. This approach involves acquiring and managing physical assets with long-term revenue potential.
- Infrastructure Funds: Managing pooled investment vehicles that focus on infrastructure projects. These funds typically invest in a diversified portfolio of infrastructure assets, providing investors with exposure to a broad range of infrastructure sectors.
- Infrastructure Securities: Investing in publicly traded securities related to infrastructure, including companies involved in the construction, operation, and management of infrastructure projects.
3A)Private Equity:-
CenterSquare provides advisory services related to private equity investments, including:
- Investment Strategy Development: That is, helping potential clients come up with strategies like what happens in the private equity sector based on their ambitions, risk tolerance, and lab market conditions.
- Due Diligence and Market Analysis: Review and full due diligence and market analysis conducted by banks to find out the investment opportunities and then ascertain their viability.
- Portfolio Management: Private equity is more about carrying the expertise in managing and improving the portfolio to make the private equity business match the client’s objectives.
3B)Direct Private Equity Investments
CenterSquare provides direct private equity investment opportunities in:
- Real Estate: Direct investments in real estate projects or portfolios, including acquisitions, developments, and value-add opportunities. These investments typically involve significant capital commitments and active management.
- Infrastructure: Direct investments in infrastructure assets such as transportation, energy, utilities, and other critical infrastructure projects. These investments may involve acquiring and managing infrastructure assets with long-term revenue potential.
BNY Mellon Acquisition
In early 2017, BNY Mellon acquired CenterSquare Investment Management for around 400 Million US Dollars, which made headlines all over the world. Safe to say that It grew a lot during the acquisition, and it is still growing rapidly and not showing any signs of stopping anytime soon!
BNY Mellon and CenterSquare Investment Management
The love story between BNY Mellon and CenterSquare Investment Management was short-lived. In September 2017, BNY Mellon announced a significant strategic shift involving its real estate investment management arm. The financial giant decided to sell CenterSquare Investment Management to the asset management firm Virtus Investment Partners. This decision was part of BNY Mellon’s broader strategy to streamline its business operations and focus on its core areas of strength.
The sale, valued at approximately $400 million, was aimed at realigning BNY Mellon’s investment management resources. The move was seen as a way for BNY Mellon to reduce its exposure to the real estate sector and concentrate on its primary investment management and wealth management businesses.
Despite the sale, BNY Mellon’s decision to divest CenterSquare reflects broader trends in the financial industry, where firms are continuously reassessing their portfolios and operational focus in response to changing market conditions and strategic priorities.
Concluding statements:
Today, CenterSquare is focused on providing great investment management and leveraged by their expertise and client obsession. They continue to grow and adapt in the investment world so they are a part of the future of real estate, infrastructure, and private equity.
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