Global commercial real estate services and investment management firm Colliers International has acquired a controlling interest in four subsidiaries of Dougherty Financial Group LLC: Dougherty Mortgage LLC, Dougherty & Company LLC, Dougherty Funding LLC and Dougherty Insurance Agency LLC.
Under Colliers’ partnership model, Dougherty’s senior leadership, other than Mike Dougherty and Gerry Kraut – who are selling their respective interests in the four Dougherty subsidiaries but will remain with Dougherty Financial Group LLC – will continue to drive the operations as significant shareholders, maintaining the service clients expect with the additional backing of a global platform.
The transaction is subject to customary closing conditions, including receipt of regulatory approval, and is expected to close in the first half of 2020. Terms of the transaction were not disclosed.
Headquartered in Minneapolis with more than 250 professionals operating from nine offices, Dougherty provides mortgage banking, brokerage and investment banking services across 21 U.S. states. The company currently originates more than $2.5 billion of real estate loans annually and services more than $7 billion in loans.
At closing, all Dougherty mortgage banking activities will be merged and rebranded as Colliers Mortgage, LLC and will continue to provide specialty debt financing for multifamily, healthcare and senior housing real estate through U.S. Government-Sponsored Enterprises. This includes origination, underwriting, asset management and loan servicing for Fannie Mae, the Federal Housing Administration / U.S. Department of Housing and Urban Development (FHA/HUD) and U.S. Department of Agriculture (USDA). Colliers Mortgage will also provide commercial property lending to institutional investors as well as loan syndication.
All securities operations of Dougherty will be rebranded as Colliers Securities, LLC and will continue to be registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA) providing brokerage, investment banking, capital markets services, public finance services and other real estate related activities.
“Our partnership with Colliers is an exciting next step in our evolution and given our shared enterprising culture and commitment to excellence, we could not be happier with the new partnership,” said David Juran, who will assume the role of Chief Executive Officer and largest management shareholder upon closing. “Our firm has enjoyed tremendous success over the years since our founding by Mike Dougherty and the leadership of Gerry Kraut. We look forward to accelerating our success and growth trajectory in the future by leveraging Colliers’ best-in-class platforms and relationships for the benefit of our clients.”
“This investment firmly establishes Colliers as one of the leading players in multifamily debt and public finance capital markets in the U.S., marking a significant milestone as we continue to grow and develop our full-service capital markets capabilities,” said Gil Borok, President & CEO, Colliers International | U.S. “With our already extensive capabilities in investment sales and debt capital markets, this addition provides Colliers important depth, experience and growth opportunities to provide our clients with the best solutions in debt finance and advisory services.”