Goldman Sachs Buys Minority Stake In Toronto-Based Slate Asset Management

By Amit Chowdhry ● August 22, 2019
  • Slate Asset Management, a leading alternative asset management platform focused on real estate, announced it raised a minority investment from Goldman Sachs

Slate Asset Management L.P. — a leading alternative asset management platform with a focus on real estate and real assets — announced a passive and non-voting minority equity investment from Goldman Sachs Asset Management’s Petershill program. The terms of the agreement were undisclosed. But as part of the deal, Slate founders Blair Welch and Brady Welch have made a long-term commitment to the business.

This investment will provide capital that Slate will use to enhance its platform and increase its GP investments in current and future businesses and investment vehicles thus further strengthening the firm’s alignment with its clients and investing partners. And the investment accelerates Slate’s goal to build the leading independent alternative investment platform in real estate and real assets.

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Slate has closed more than $11 billion of transactions across Canada, the U.S. and Europe through multiple vehicles spanning co-investments with global institutional partners, private equity funds and publicly-traded Real Estate Investment Trusts. And Slate has offices in Toronto, Calgary, Chicago, and Frankfurt.

“This investment in our platform is an endorsement of our people, our strategy and our future,” said Brady Welch. “For our investors and our team, this is excellent news; our strategy and model remain the same, and we can now benefit from our new relationship with Goldman.”

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“Since we started Slate nearly 15 years ago, we have showed that we can build tremendous value by providing our investors with a unique perspective, focusing on the fundamentals of the assets we acquire and delivering hands-on management that is innovative and creative. With our new relationship with Goldman Sachs, Brady and I are enthusiastic about what all of us at Slate can accomplish together over the next decade and beyond,” added Blair Welch.

The transaction is not going to have any impact on the control or decision making of Slate. And the day-to-day operations and management of Slate will remain unchanged.

“Slate Asset Management is an incredibly innovative, dynamic real-estate focused alternative asset management platform,” explained Robert Hamilton Kelly, the Managing Director of Goldman Sachs Asset Management Petershill program. “We are big believers in the strategy, the team and the model. We are excited to partner with Slate as they work to capture the opportunities before them.”

Goldman Sachs Asset Management’s (GSAM) Petershill Program is managed by GSAM’s Alternative Investments & Manager Selection (AIMS) Group — which provides investors with investment and advisory solutions across leading private equity funds, hedge fund managers, real estate managers, public equity strategies and fixed income strategies. The Petershill program has investments in over 20 asset management firms and provides strategic capital to mid-sized asset management firms and has raised over $5 billion of commitments since inception. And GSAM is one of the world’s leading investment managers with more than $1 trillion in assets under supervision globally as of June 30, 2019.

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