Nuveen Launches Natural Capital and Infrastructure Platforms | New

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Nuveen is reorganizing its real estate asset business by launching two new “pillars” focused respectively on infrastructure and natural capital, alongside its $ 133 billion (€ 115 billion) real estate platform.

Two of its subsidiaries, Westchester Group Investment Management and GreenWood Resources, will be consolidated to form Nuveen Natural Capital, while Glennmont Partners and AGR Partners will be combined with Nuveen’s existing private infrastructure platform to form Nuveen Infrastructure.

Nuveen Natural Capital will be led by Martin Davies, CEO of Westchester Group, which has grown into one of the largest agricultural asset managers with $ 7.7 billion under management, and will include the $ 1.5 billion in assets. forest managed by GreenWood Resources.

Nuveen, TIAA’s $ 1.2 billion investment manager, has strengthened its presence in infrastructure markets in recent years and, in early 2021, acquired European renewable energy specialist Glennmont Partners.

Nuveen Infrastructure will be built around its existing private infrastructure assets, Glennmont and its agribusiness partners AGR, and will be led by Biff Ourso who has worked at Nuveen for 16 years.

The revamped platform will launch in January next year, but the announcement comes two weeks after CBRE announced that its investment arm will consolidate its real estate and infrastructure businesses under one brand, CBRE Investment Management. In May, Manulife Investment Management announced its intention to combine its real asset capabilities under the leadership of Christoph Schumacher.

Nuveen cited its own research – which found that more than two-thirds of institutional investors plan to increase allocations to infrastructure, natural resources and other alternatives – in its decision to streamline its supply into real assets.

When asked about the timing and rationale for the move, Mike Sales, CEO of Real Assets, said, “When I took over about 18 months ago, I really wanted to put these capabilities together in a storefront. for the market ”.

Bringing together Westchester and GreenWood Resources, for example, “given the earthly nature of the two companies, was a really sensible thing to do,” he said, and not something that many other organizations are able to replicate.

Nuveen Natural Capital will manage more than $ 9 billion in assets when the two companies combine, making it the second largest of the three pillars, after Nuveen Real Estate.

In infrastructure, Nuveen had built up a private infrastructure portfolio on behalf of its parent company TIAA, but is now looking to expand into third-party fund management – a goal that will be helped by the recent acquisition of Glennmont. Partners.

“We already manage money for our general account, but what we really wanted to do was make the infrastructure business an institutional capacity for third parties,” said Sales.

“We are already working with Glennmont on three very interesting strategies that complement what they are already doing.

Sales said that “in addition to growing Glennmont’s clean energy business, we also want to develop our capabilities” in other areas of infrastructure, adding that this could be done “organically or inorganically”.

To read the digital edition of the latest IPE Real Assets magazine, click here.


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