February 2, 2016

TIAA-CREFF announced it is launching a new business unit dedicated exclusively to expanding the group’s real asset capabilities. Operating as a ‘stand-alone business’, the unit will include the company’s agriculture, timber, global real estate, infrastructure, and energy teams, along with subsidiaries, TH Real Estate, Westchester Group Investment Management, GreenWood Resources, and Churchill Asset Management.

As of December 31, 2015, TIAA-CREFF manages approximately $100 billion in real assets, and this new business unit is designed to facilitate growth through the aligning of affiliates, business teams and strategies.

 “This model will allow us to more effectively develop all aspects of our real assets business so we can best leverage our distinct expertise in this space and better serve our investors, which have grown beyond our retirement base to include sovereign wealth fund, pension fund and insurance company clients,” said Jose Minaya, current head of Private Markets Asset Management at TIAA-CREFF, and who will serve as President of the new division. “These changes will enable us to take a more nimble approach for our business and accelerate our speed-to-market with transactions and products. Importantly, they will not impact our affiliates’ portfolio management activities, products or the integrity of our investment approach.”

Headed by Mr. Minaya, who throughout his tenure with TIAA-CREFF has built out multiple assets teams responsible for agriculture, timber, energy, and infrastructure investments, the combined platform will also be supported by Heather Davis, Chief Investment Officer of TIAA-CREFF’s Private Markets Group, who will serve as CIO for the new unit, bringing 30 years of experience in private equity, infrastructure, real estate, and credit. Nuveen Investments’ Chief Legal Officer, Mr. John MacCarthy, has been appointed as the unit’s Chief Operating Officer.

The division, which will encompass 31 offices in 16 countries and employ 900 people, will also include Randall Pope, President of Westchester Group; Jeff Nuss, President of GreenWood Resources; Ken Kencel, President of Churchill Asset Management; Chris McGibbon, head of real estate for the Americas; and, Mike Sales, head of TH Real Estate, which focuses on European and Asia Pacific real estate.

Tom Garbutt, the head of TIAA-CREF’s global real estate business, has announced plans to retire after 34 years with the group, however, he will remain as an advisor during the transition period. After the transition is complete, Phil McAndrews, CIO for global real estate, will also leaving the company to pursue other opportunities.

Commenting in a company statement on the launch of the unit, Rob Leary, CEO, Asset Management said, “Institutional investors worldwide are increasingly turning to real assets as part of a broader focus on alternative investments, which can provide a source of uncorrelated returns. TIAA-CREF has a long history of finding innovative investment opportunities across this asset class, and the launch of our real assets business will enable us to enhance our capabilities and diversify investment options for our clients and investors.”