Taconic’s decision to close its commercial real estate operations is part of a broader effort to concentrate on its core strategies of merger arbitrage and corporate and structured credit. The firm has side-pocketed its CRE positions from its $2.9 billion flagship Opportunity Fund, aiming to manage those assets toward optimal exits.
“We are in the process of working with James to transition the management of our legacy CRE investments to a team focused entirely on managing these assets to optimal exits,” Taconic said in a letter.
Taconic’s first three CRE Dislocation funds, which collectively manage $800 million, will remain with the firm but are in “harvest mode” to return capital to investors.
Axonic Capital, which specializes in commercial and residential real estate as well as securitized credit and commercial lending, views the acquisition as an opportunity to expand its presence in a rapidly evolving market.
“We see an extraordinary opportunity in the CRE market as the asset class undergoes a period of transformation and dislocation,” Axonic co-chief investment officer Clayton DeGiacinto said in a statement.
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