Composition Capital explores secondaries sale – Exclusive

The Amsterdam and Hong Kong-based private real estate multi-manager is exploring the sale of its assets among other strategic options.

Composition Capital Partners, the Amsterdam and Hong Kong-based private real estate multi-manager, is in talks with prospective suitors over the sale of the fund interests it manages.

The firm, which currently manages approximately $200 million of equity on behalf of four real estate funds of funds, decided to consider its strategic options with a view to solely focus on its programmatic joint venture strategy.

The decision to review its strategic options was instigated prior to the death of founder Erwin Stouthamer earlier this year.

Composition is not thought to be using external advisors as it evaluates its options.

The firm has invested in value-added and opportunistic funds in Europe and Asia and had built up a portfolio of positions in more than 20 international markets and with 32 investment management partners since its inception in 2005.

Investments were spread across two funds in Asia and two in Europe, the latter of each attracting approximately $175 million of equity commitments apiece.

The firm’s capital has come from more than 20 institutional investors, across seven countries in Asia, Europe and the US.

It is understood that the process of reconsidering its strategy was originally started by Stouthamer and, following his passing, is being continued by chief operating officer Roderik Mulder and head of Asia Why Choong Low.

One option for Composition Capital currently being negotiated is a largescale sale of the holdings from its four funds – currently approximately 20 fund positions – on the secondaries market.

It is believed that the firm currently is discussing a sale of these to Zug-based private markets firm Partners Group.

Landmark Partners, another prominent secondaries investment management firm, was also once thought to have been in the mix for the assets, however talks between Landmark and Composition are now understood to have ended.

The firm’s underlying fund managers, which include Moorfield in Europe and Arch Capital in Asia, are understood to have been informed as to the progress of these negotiations.

Composition declined to comment.