Cerberus Capital Management has sold Tenet Equity to CBRE Investment Management for $1.6 billion, exiting the national net lease investment platform Cerberus established with management in 2021.
CBRE Investment Management is making the acquisition on behalf of several of its investment strategies.
Cerberus founded Tenet alongside executive partners Nicholas Eggert and Andrew Gallagher, building the company into a provider of triple-net lease financing for middle-market companies and financial sponsors across the U.S.
Tenet’s portfolio now includes more than 200 properties totaling approximately 12 million square feet across 39 states, 26 industries, and more than 65 tenants.
The company provides long-term real estate capital through net lease investments and sale-leaseback transactions, allowing businesses to monetize owned real estate while continuing to operate mission-critical facilities.
Tenet is headquartered in Scottsdale, Arizona, and is led by founding CEO Nicholas Eggert and CIO Andrew Gallagher.
Cerberus manages approximately $72 billion in assets across credit, real estate and private equity strategies.
Support: Evercore served as exclusive financial adviser to Cerberus, while Kirkland & Ellis served as legal counsel.
KEY QUOTES:
“We are proud to have established Tenet as a reliable source of triple net lease financing for growing middle-market companies across the U.S.,” said Tom Wagner, Head of North American Real Estate at Cerberus. “Tenet has grown significantly under our leadership and delivered significant value for both our investors and its customers.”
Tom Wagner, Head of North American Real Estate at Cerberus
“The net lease asset class sits at the intersection of corporate credit and real estate, and Tenet’s success is a great illustration of the successful collaboration that takes place across the Cerberus platform. Our credit and real estate teams worked alongside management together to build Tenet, and we’re confident Tenet is well positioned for substantial growth and success going forward.”
Bob Davenport, Global Head of Corporate Credit at Cerberus
“Cerberus was an ideal financial partner from the beginning, delivering a combination of capital, business knowledge and net lease market expertise. In just a few years, Nick, Andrew, and our team have grown the company from an idea to an established, scaled, diversified, market-leading company with a deep and talented team.”
Chris Volk, Chairman of the Board of Tenet Equity
