Ladenburg Thalmann Real Estate Hybrid

Chidem Kurdas

Investment bank Ladenburg Thalmann is to start a fund that will blend real estate and natural resource investments with hedge funds. The manager is Philip Blancato, who is the president of the firm’s asset management arm.

The new vehicle will invest at least 25% of its assets in real estate investment trusts that  focus on the commercial property market, including office, retail, hotel, multifamily, medical and self-storage buildings.

Commercial real estate, where prices continue to slide in certain sectors and regions, is seen as offering bargains.

Another 25% or so of the fund’s assets are to be allocated to commodity trading advisors, long/short  credit strategies, event-driven funds, mortgage-backed and asset-backed securities managers and other hedge funds.

The fund is also to invest in energy master limited partnerships. Ladenburg Thalmann investment bank does deals involving MLPs and was the book runner for an offering by Cushing MLP Total Return Fund this month. Natural resource MLPs have emerged as popular investments—Legg Mason, for instance, is preparing a fund to invest in them.

The asset manager’s parent company, Ladenburg Thalmann Financial Services Inc., is publicly traded.

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