The firm, which currently manages approximately $200 million of equity on behalf of four real estate funds of funds, decided to consider its strategic options with a view to solely focus on its programmatic joint venture strategy.
The decision to review its strategic options was instigated before the death of founder Erwin Stouthamer earlier this year.
Composition is not thought to be using external advisors as it evaluates its options.
The firm has invested in value-added and opportunistic funds in Europe and Asia and had built up a portfolio of positions in more than 20 international markets and with 32 investment management partners since its inception in 2005.
Investments were spread across two funds in Asia and two in Europe, the latter attracting approximately $175 million of equity commitments apiece.
The firm’s capital has come from more than 20 institutional investors, across seven countries in Asia, Europe and the US.
It is understood that the decision to reconsider its strategy was originally started by Stouthamer and, following his death, is being continued by chief operating officer Roderik Mulder and head of Asia Why Choong Low.
One option for Composition Capital currently being negotiated is a large scale sale of the holdings from its four funds – currently approximately 20 fund positions – on the secondaries market.
It is believed that the firm currently is discussing a sale of these to Partners Group.
Landmark Partners was also once thought to have been in the mix for the assets, but talks between Landmark and Composition are now understood to have ended.
The firm’s underlying fund managers, which include Moorfield in Europe and Arch Capital in Asia, are understood to have been informed as to the progress of these negotiations.
Composition declined to comment.
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