CBRE Global Investors, the investment management business of CBRE Group Inc (CBG.N), will wind down a $700 million real estate debt fund following the departure of certain key executives, a source familiar with the matter told Reuters.
Jenna Gerstenlauer, who served as chief investment officer of the CBRE Global Investors Capital Partners debt fund, left the firm in early August to form a competing enterprise, said Pam Barnett, a spokeswoman for CBRE Global Investors.
Capital Partners President Frank Scavone has also announced plans to leave at the end of the year, she said.
The Wall Street Journal, citing people familiar with the matter, reported that Gerstenlauer and others in her team had become disgruntled over compensation.
Barnett declined to discuss the details of the Journal story. (link.reuters.com/rah53v)
"These departures triggered a 'keyman' event in the partnership agreement," she said.
The company has not announced the winding down of the fund. But a 'keyman' clause prohibits a fund from making any new investment decisions if certain top executives leave.
CBRE Global Investors had about $88 billion in assets under management as of June 30.