AXA Investment Managers - Real Assets is set to buy one of the US-focused lines of business from Quadrant Real Estate Advisors, including a real estate debt team, and will take over the management of $9.4bn in US commercial mortgage loans.
The transaction, which is under contract and is pending regulatory approval, is set to bring AXA IM - Real Assets' loan portfolio to $20.5bn and its total debt platform including infrastructure finance to around $28bn.
Some 24 members of Quanrant, including five of its founding partners, will also join AXA IM - Real Assets as part of the deal. Quadrant will continue to manage various commercial real estate debt strategies in the US, UK, and Ireland.
This new capabilities will allow AXA IM - Real Assets to offer investment solutions to clients through different debt products and across many jurisdictions, as well as a strong foundation for continued growth in the US, where it has invested more than $1.1bn in commercial real estate loans since 2014.
Isabelle Scemama, CEO of AXA IM - Real Assets, said: "The acquisition, of this market leading US 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.
"It will also be a major milestone in our goal of creating one of the largest and truly global real assets investment and management firms.
"The transaction will also further strengthen our ability to fulfill clients' evolving and global requirements by taking a 360° approach to investing in real assets across different geographies and sectors, through opportunities in equity and debt, as well as via private or listed instruments."
Kurt Wright, who has been CEO of Quadrant since its establishment in 2006, added: "Quadrant Real Estate Advisors will continue to devote its resources to delivering excellent results for its valuable, strategic clients via originating and managing commercial property debt in the US and Europe.
"Quadrant senior management remains fully focused on its fiduciary-first, fundamentals-driven, relative value style of investing. We look forward to continuing to deliver on behalf of our clients and providing unique, valuable career opportunities for our employees."
European Commission relents to pressure
Latest news and analysis
Remains open to existing investors
Chairs first meeting this afternoon
Effective from 1 December