Colliers completes US debt finance acquisition
Colliers International has completed its deal to buy a controlling stake in US investment banking firm Dougherty Financial Group’s debt and securities business.
The acquisition will create a new US debt finance, loan servicing and securities offer.
Dougherty, which is headquartered in Minneapolis (pictured), originates $2.5bn (£2bn) of real estate loans annually and services $7bn in real estate loans. It generated more than $100m of revenue during 2019.
Colliers International has completed its deal to buy a controlling stake in US investment banking firm Dougherty Financial Group’s debt and securities business.
The acquisition will create a new US debt finance, loan servicing and securities offer.
Dougherty, which is headquartered in Minneapolis (pictured), originates $2.5bn (£2bn) of real estate loans annually and services $7bn in real estate loans. It generated more than $100m of revenue during 2019.
Further terms for Colliers’ stake in four subsidiaries – Dougherty Mortgage, Dougherty Funding, Dougherty & Company and Dougherty Insurance Agency – were not disclosed.
Dougherty will retain its senior leadership team and remain “significant shareholders” in the business.
The mortgage banking operations have been rebranded as Colliers Mortgage, specialising in debt financing for multifamily, healthcare and senior housing real estate through US government-sponsored enterprises.
This includes origination, underwriting, asset management and loan servicing for the Federal National Mortgage Association, also known as Fannie Mae; the Federal Housing Administration/US Department of Housing and Urban Development; and the US Department of Agriculture.
Colliers Mortgage will also originate and service other types of commercial real estate loans for US landlords and developers.
All brokerage, investment banking, capital markets and public finance services will be carried on through the newly branded Colliers Securities.
David Juran, chief executive and largest individual shareholder of Dougherty, said that the business also plans to capitalise on additional opportunities through its new partnership with Colliers subsidiary Harrison Street Real Estate Capital.
Gil Borok, president and chief executive of Colliers International in the US, said: “Finalising this new partnership establishes Colliers as a top player in agency and commercial debt finance, as well as public finance advisory, which, together with our rapidly growing investment sales capabilities, enables us to seamlessly advise clients on all capital markets requirements across the US.”
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