M3 to focus more on principal investment

Up to five departures at M3 Capital Partners have occurred amid a sharpened focus on its growing principal investment area and greater selectivity when it comes to fundraising mandates.

M3 Capital Partners, the global firm, has sharpened its focus on its growing $3.4 billion principal investment area and is to be even more 'selective' when it comes to capital raising in its advisory business.

As a result of the shift, the Chicago-based firm – which has been operating for 21 years and is led by managing principal and chief executive officer Don Suter – has pruned its overall headcount by around five with some senior level departures taking place. The company declined to comment but it is believed that up to five senior staff have left the business.

It is thought that the majority of the firm's resources will now be focused on its investment business via its Evergreen Investment Partnership that was established in 2005. That platform targets long-term investments in real estate operating companies and typically makes equity commitments of $100 million to $350 million. It currently has investments in 13 companies in the US, Europe, Asia and South America in sector-focused companies such as self-storage, student housing, housing, food-anchored retail, motorway service areas, and cemeteries and funeral homes.

At the same time, it is planning to be increasingly selective in new mandates for its advisory business. A leaner global advisory team is being retained in Chicago, London, Hong Kong, São Paulo to originate and execute transactions. M3 has raised some $25 billion for third party operating companies over the years and highlight fundraisings most recently include advising Global Logistics Properties. GLP raised $1.5 billion of equity for its GLP China Logistics Fund last year.