Guggenheim expands real estate, infrastructure platform

Henry Silverman, Apollo’s former COO, has been named global head of real estate and infrastructure. Meanwhile, several former RREEF execs have joined the infra team.

It looks like Guggenheim Partners will be acquiring RREEF’s expertise after all. Despite having failed to negotiate a takeover of Deutsche Bank’s alternative asset management business, the New York- and Chicago-based diversified financial services firm has expanded its real estate and infrastructure investment platform in part by appointing several former RREEF executives to its infrastructure team. 

As part of the expansion, Guggenheim has named Henry Silverman, a former executive of Apollo Global Management, as its global head of real estate and infrastructure. In the newly-created post, Silverman is responsible for managing and coordinating activity for all of Guggenheim's various real estate businesses, including Guggenheim Real Estate, Guggenheim Commercial Real Estate Finance, Pillar Financial, Generation Mortgage and Guggenheim Retail Real Estate Partners, as well as overseeing the infrastructure team.

Silverman joined Guggenheim in early 2012 as vice chairman of Guggenheim Investments. Previously, he served as a director and vice chairman of the board and member of the executive committee of Apollo, as well as its chief operating officer from 2009 to 2011.

From 1990 to 2007, Silverman served as chairman and chief executive officer of Cendant Corporation and its predecessor, HFS, as well as its successor company Realogy. Prior to that, he served as chief investment officer at Blackstone Capital Partners I from 1989 to 1991.

The infrastructure investment team is led by senior managing director William Reid and includes Michael Madia, managing director and operating partner; Justine Gordon, managing director and head of acquisitions; Vince White, vice president of due diligence and asset management; and James Gabriel, vice president of acquisitions. All five members of the new infrastructure team previously worked at RREEF. 

Deutsche Bank put RREEF on the selling block in late 2011 and, in February 2012, the bank entered into exclusive negotiations with Guggenheim to sell parts of Deutsche Bank Asset Management, including RREEF. Although sources said the sale appeared to be a done deal, negotiations between Deutsche Bank and Guggenheim ended in June after both parties “were unable to agree on terms for the sale of the business,” according to Deutsche Bank. Ultimately, the bank decided to retain RREEF and merge it into its new Deutsche Asset & Wealth Management division.