Barings Strikes Deal to Buy Artemis Real Estate Partners
The acquisition is on track to close during the first quarter.
Barings LLC has agreed to acquire Artemis Real Estate Partners, the companies announced on Wednesday morning. The sale is expected to close during the first quarter.
According to reporting from Private Equity Real Estate, the merger was in negotiation for more than a year. As of December 2024, Barings, a MassMutual subsidiary, had north of $50 billion worth of assets under management in its global real estate platform. By adding Artemis’ $11 billion in assets under management, the deal will increase Barings’ portfolio to upward of $60 billion. Financial terms of the deal were not disclosed.
Earlier this month, Barings and Trinity Capital, its joint venture partner, started construction on Phase Two of Horizon 16 Industrial Park, which will add 1.5 million square feet of industrial space to a 1.1 million-square-foot logistics campus.
Following the acquisition, Artemis’ team will join Barings, combining the firms’ investment and asset management capabilities. Founded in 2009, Chevy Chase, Md.-based Artemis has made value-add, core-plus, health-care and credit investments in the office, industrial, retail, medical office, multifamily, hospitality and self-storage sectors.
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Dechert LLP was Barings’ legal advisor for the acquisition, and Paul Hastings LLP served as counsel to Artemis. Berkshire Global Advisors was Artemis’ financial adviser.
Poised to prosper?
The acquisition comes at a time when the commercial real estate market cycle is characterized by lower interest rates, increasingly positive investor sentiments and renewed momentum in the debt markets. According to CBRE’s Lending Momentum Index, non-agency loan closings for banks rose 43 percent in the fourth quarter of 2024, compared to 18 percent in the third quarter.
Alternative investment strategies such as secondaries are also seeing a comeback, accounting for their highest share of capital raised for closed-end funds since 2019.
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