Nuveen has announced the strengthening of its Real Assets platform, by bringing together its private real asset capabilities and launching two new business units. Its goal is to create a more streamlined proposition as investors seek to increase exposure to real assets and alternatives.
In fact, according to research conducted by the firm, over two thirds of institutional investors are planning to increase allocation to infrastructure, natural resources investments and other alternative assets, as they seek to reduce climate-related financial risk exposure and align portfolios with the transition to a sustainable low-carbon economy.
The newly structured Nuveen Real Assets platform will consist of capabilities in real estate, farmland, infrastructure, timberland, agribusiness, and commodities; which will be organized under three core pillars, including two newly launched units: Nuveen Natural Capital and Nuveen Infrastructure. These two will sit alongside Nuveen Real Estate and will be enhanced by targeted and complementary capabilities across Nuveen’s Private Impact and Commodities segments.
“We’re hugely excited to be enhancing our Real Assets proposition, which will include bringing expertise together to create the newly launched businesses. Investor demand for real assets is increasing at an extraordinary pace and by bringing together our unrivalled expertise in alternatives, we will be better positioned to respond to meet growing global investor demand for long-term sustainably managed investments. The strengthening of the platform represents the next step in our evolution in becoming the leading land-based asset manager, investing in a sustainable way for the enduring benefit of our clients and society”, commented Nuveen’s CEO of Real Assets, Mike Sales.
The company has highlighted that its sustainable investment philosophy will underpin the entire Real Asset platform’s approach, “offering investors access to alpha driven strategies that are deployed via a responsible investing lens“. Under the leadership of Mike Sales, the enhanced platform will launch in January 2022.
The three core pillars
Regarding the new offering, the company has revealed that Nuveen Natural Capital will combine Westchester Group Investment Management, Nuveen’s farmland investment business with over $7.7bn of farmland assets under management, with GreenWood Resources, which specialises in the acquisition and stewardship of forestry assets and currently manages $1.5bn of timberland assets across over 760,000 acres. Martin Davies, current CEO of Westchester Group, will lead this business unit.
As for Nuveen Infrastructure, it will combine private equity and equity-like strategies through Glennmont Partners, one of Europe’s largest renewable energy fund managers with over $2bn in assets under management, alongside Nuveen’s existing diversified private infrastructure platform and its agribusiness platform- AGR Partners. Following a 16-year period at Nuveen, Biff Ourso, will be the Global Head.
Meanwhile, Nuveen Real Estate is one of the largest real estate managers globally, with over $133bn of assets under management, and will remain under the leadership of Chris McGibbon. The business consists of six core business lines across the retail, office, logistics, housing, debt & alternatives sectors
For Funds Society, Madrid
For Beatriz Zúñiga