Allegiancy and TriStone join forces in multimillion dollar deal
Allegiancy, based in Richmond, and TriStone Realty Management in Houston, two commercial real estate asset managers, said Thursday that they have completed a multimillion dollar transaction that will accelerate Allegiancy’s growth, and give TriStone and its clients access to additional technology and analytical infrastructure.
The companies did not release specific details of the deal, which makes TriStone an affiliate of Allegiancy.
TriStone CEO Randy McQuay said in a statement: “The decision to join with Allegiancy as an affiliate brings TriStone and our clients an industry-leading technology platform, specialized analytical tools and an expanded team of top-flight professionals. The infusion of capital, expertise, and operating platforms relieves us of administrative burdens, and frees us to focus on delivering high-value services to our institutional clients.”
For Allegiancy, TriStone brings a sizable portfolio of quality assets under management and an experienced team. “Making this investment in TriStone and bringing the company on as an affiliate validate an important part of Allegiancy’s growth strategy. In 2014, we doubled our portfolio of assets under management through organic growth. With this transaction, we have grown by 400 percent in just over a year,” Allegiancy CEO Steve Sadler said in a statement.
Sadler added that the company is “delighted that this comes at the perfect time – as we prepare to raise $30 million in new capital to continue growing.”
Allegiancy said it is drafting materials to file for a $30 million equity raise under the new SEC Regulation A. The offering is expected to be available to the public in September.