Columbia Threadneedle Investments (Columbia Threadneedle) is to acquire Lionstone Partners Ltd, a national real estate investment firm based in Houston (Lionstone). Lionstone specialises in investment strategies based upon proprietary analytics and manages approximately USD6 billion in assets.
The acquisition will extend Columbia Threadneedle’s investment capabilities into US real estate, an important asset class that is projected to attract increasing allocations from both institutional and retail investors. Lionstone will accelerate its evolution as an advanced analytics firm, gaining access to the broader asset gathering, client service and research capabilities of Columbia Threadneedle, while benefiting from the financial strength of Ameriprise Financial.
The acquisition will expand Columbia Threadneedle’s offerings across the alternatives asset management category. It adds complementary real estate capabilities to the firm’s USD10.5 billion UK property business and further develops its multi-asset solution capabilities.
“We believe our broad institutional capabilities and relationships, together with our investment research insights, make this an excellent fit,” says Ted Truscott (pictured), chief executive officer of Columbia Threadneedle Investments. “Real estate is an important asset class for institutional and retail clients, and we are enthusiastic about the opportunity to further our capabilities in this growing asset class.”
Lionstone invests nationally in commercial real estate, with a focus on cities that are best positioned to enjoy outsized demand and rental growth. It counts leading corporate and public pension plans among its key clients.
“Columbia Threadneedle’s leadership, experience, and culture are complementary to Lionstone’s, making this a strong strategic partnership,” says Lionstone chief executive officer Jane Page. “Our foundational investment philosophy and approach will remain the same.”
Lionstone will retain its brand name and identity within Columbia Threadneedle as well as its Houston headquarters. The executive team will remain in place, with Page reporting to Truscott.
“As one of the earliest adopters to apply proprietary advanced analytics to real estate, our investment process is a significant competitive advantage that has allowed us to consistently deliver attractive returns with lower risk to our investors,” says Glenn Lowenstein, chief strategy officer at Lionstone. “We are excited about this opportunity to take our analytics-driven approach to the next level.”