PE-backed Cushman & Wakefield prepares for US listing
A global commercial property services provider that TPG Capital and PAG Asia Capital created through the merger of Australia’s DTZ with US-based Cassidy Turley and Cushman & Wakefield, has filed for a US IPO.
The company, which operates under the Cushman & Wakefield brand, has yet to finalize the size or pricing of the offering, according to a filing. The proceeds will be used to settle financial obligations incurred through the bolt-on acquisitions, chiefly a second lien loan of around $440 million and deferred payment obligations related to the purchase of Cassidy Turley. Total long-term debt stands at $3 billion.
Cushman & Wakefield claims to be a top three commercial real estate services player alongside CBRE and Jones Lang LaSalle. It operates from approximately 400 offices in 70 countries, managing approximately 3.5 billion square feet of real estate space on behalf of institutional, corporate and private clients.
Nearly half of the company’s fee revenue comes from property, facilities and project management and about one third from leasing services. The Americas account for two-thirds of its business, with Asia Pacific and other markets on 18% and 15%, respectively.
TPG holds a 44.7% stake in Cushman & Wakefield, while PAG owns 33.6% and Ontario Teachers’ Pension Plan (OTPP) has 11.7%. The three investors teamed up to buy DTZ from Australia-listed UGL in November 2014 for $1.1 billion, including $499.7 million in equity. Cassidy Turley was added to the platform a month later for $360.4 million, of which $96 million was equity from the PE shareholders.
In September 2015, the company completed the acquisition of Cushman & Wakefield for $1.9 billion in cash. The sponsors contributed $940 million in equity.
The company’s overall revenue came to $6.92 billion in 2017, of which fee revenue was $5.32 billion. This compares to $6.22 billion and $4.84 billion the previous year. Over the same period, adjusted EBITDA rose from $474.8 million to $528.5 million, while the net loss shrank from $449.1 million to $220.5 million.
TPG and PAG receive an annual fee of $4.3 million for management advisory services and have been paid an additional $12.9 million over the last three years in transaction advisory fees.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.