October 10, 2017

Our new report, “Staffing Concerns at CBRE Global Investors,” is available here.

Key Points:

  • CBRE Global Investors (GI) has experienced significant turnover in recent years.
  • Between March 2012 and March 2017, the number of employees with investment advisory functions has fallen from 134 to 71.
  • Over the same period, the ratio of Assets Under Management per image001investment employee has increased from $702.2 million to $1.2 billion.
  • A 2016 Preqin analysis found that the largest private equity firms had an average of ten employees per $1 billion AUM.
  • Four of eight members of CBRE GI’s current executive team have had fewer than ten years tenure with GI.
  • As CBRE GI fundraises for new a value-add real estate fund and separate accounts, Limited Partners may question the company’s capacity to weather the anticipated real estate market headwinds in light of these staffing concerns.

 

Key Questions for Investors

  • In what ways have fluctuating staff levels affected the stability of the investment team?
  • Have staff levels and the departure of high-level staff affected consistency in making investment decisions over the life of a fund?image002
  • What recourse should investors consider in the event of future turnover?
  • What does CBRE’s high ratio of AUM to employees mean for the firm’s ability to manage in a turbulent market environment?
  • What steps has CBRE GI taken to ensure continuity going forward?