Bank of America Merrill Lynch

In this month’s issue of PERE, we talk with Michael Nierenberg of Bank of America Merrill Lynch about the state of the commercial mortgage-backed securities market.

Bank of America Merrill Lynch’s agreement to a $650 million settlement with the LPs of its Asia real estate fund has caused the entire sector to sit up and take notice. PERE Magazine November 2010 issue.

In the latest sign that the investment banking sector is withdrawing from managing private equity real estate funds, Bank of America Merrill Lynch has agreed a deal to hand over the management of the assets in its $2.65 billion Asian Real Estate Opportunities Fund and other real estate assets to The Blackstone Group.

The bank is reportedly hiring people for the real estate funds group ahead of further capital raisings. PERE first revealed in December how BoA shelved plans to exit the management of its Asia real estate funds platform.

Fresh off the close of its $7.5bn sixth buyout fund, the distressed-focused private equity firm will buy the CDOs from Merrill Lynch for $6.7bn. The investment bank will finance 75 percent of the purchase price.

Merrill Lynch’s Galante fund has reportedly made a counteroffer for the Berenice fund, eclipsing a bid previously made by Zwinger Opco, an affiliate of Goldman Sachs’ Whitehall fund.

Dan Teper has been hired by RBC Capital Markets to help expand the bank’s US real estate investment banking group. Teper was previously managing director at Bank of America Merrill Lynch.

Merrill Lynch’s global real estate principle investments division has halted plans to offload its Asian real estate investment management business. The platform may be placed on the market again late second quarter 2010.

The departure came after the biggest UK life and pensions provider combined its infrastructure and property teams and appointed Manuel Dusina as head of real assets.

The partial exit by the Toronto-based manager and its joint venture partner Investment Corporation of Dubai is a marker for institutional investors looking at doing business in the region, Jad Ellawn, Brookfield’s head of Middle East, told PERE.

EQT Exeter is eyeing distress for its largest industrial fund to date; DFI and Argo form a joint venture to enter UK industrial; Pearlmark expected to benefit from Generali's acquisition of parent company from Cathay Life; and more in today's briefing, exclusively for our valued subscribers.

Former CEO Alvin Mah has left after 18 years at Alpha Investment Partners but will remain on the investment committee of a few Alpha funds.

Jason Lee, the firm's Asia CIO, will gradually take over leadership responsibilities from David Schaefer as part of the succession planning for AEW's regional business.

While other banks exited the space, Morgan Stanley and Goldman Sachs stayed the course and restored their credibility in private real estate.

The team has left the Hong Kong-based firm following its merger with ARA to join ICG Real Estate, the property arm of the London-based manager.

Wage inflation for juniors and a return to growth for seniors are among the key takeaways of this year’s compensation report conducted by PERE and executive recruiter Sousou Partners.