PRUPIM hires MGPA’s Jeffrey for top job(2)

The resignation of MGPA’s global chief investment officer has led to a series of senior management movements within the Europe and Asia-focused private equity real estate firm.

PRUPIM, the real estate fund management business of Prudential’s European asset manager M&G Investments, has hired Alex Jeffrey from private equity real estate firm MGPA as its new chief executive.

Both PRUMPIM and MGPA announced this morning that Jeffrey had brought the curtain down on his 13-year tenure at MGPA and, prior to its genesis via a management buyout, Australian real estate giant Lend Lease.

London-based PRUPIM, which has approximately £15 billion (€18 billion; $23.7 billion) of assets under management across Europe, North America and Asia Pacific, said Jeffrey would replace long-serving current chief executive Martin Moore in July. Moore is to then take on the role of chairman before retiring after 2012.

Upon joining, Jeffrey will report directly to Michael McLintock, chief executive of M&G. McLintock said: “With an impressive record of leadership roles in the international real estate investment sector, Alex is extremely well-qualified to lead the next phase of PRUPIM’s growth.”

Jeffrey himself hailed PRUPIM as having an “enviably long record of successful property investment”. He said: “As part of M&G, an investment manager with strength in depth across all the major asset classes, PRUPIM is well positioned to offer its clients a range of innovative strategies.”

Simon Treacy, global chief executive officer at MGPA, told PERE Jeffrey’s resignation was unexpected and that the firm’s investors were notified as the two firm’s announcements were released. But he said Jeffrey’s departure would not have an effect on the firm’s documentation with its investors. While Jeffrey was a designated key man for MGPA’s second and third European opportunity funds in line with his previous position as Europe chief executive officer, the investment periods of both vehicles have since lapsed so his departure would not effect those provisions.

Jeffrey moved to MGPA’s Singapore office in 2010 to become global chief investment officer and, as such, was not a key man in MGPA’s fourth European opportunity fund, MGPA Europe Fund IV, for which it has held an initial $100 million first closing.

Treacy said: “He has accepted the role of CEO at PRUMPIM, a prominent UK organisation. That’s a credit to Alex and we wish him well. It was a job too good to refuse.”

Treacy added that Jeffrey’s responsibilities would be split between himself and group chief financial officer Tom Lee who has now been made group chief operating officer. “Tom will take on the more traditional, CIO and risk management aspects together with his existing responsibilities as CFO.”

“The aspects of Alex’s responsibilities that I’ll take centre around capital markets and the people we have who talk to our investors about existing products.”

Further to that change, MGPA has created a new role – head of group business development – and has elevated Neil Jones, previously group COO, effective immediately, into the position. In his new role, Jones will be charged with evaluating new business opportunities for the firm. MGPA also said Brett Straatemeier, MGPA’s Asia COO, is to leave in July, for family reasons, although he would continue to provide consultancy services to the firm from Australia.  Greg Lapham, MGPA’s Asia CFO is to assume Straatemeier’s responsibilities.

PERE interviewed Simon Treacy and chairman Jim Quille following the announcement. They spoke about the strategic ramifications behind MGPA’s plans for its new head of group business development role. To read what was said, see the March issue of PERE.