Key Takeaways
- • Saluda Grade completed a full acquisition of Hillcrest Finance, escalating from a passive minority investment made in June 2024 to full operational control of the commercial real estate platform.
- • Combined assets under management reach $2.5 billion following the acquisition, broadening Saluda Grade's investment capabilities from residential real estate into commercial real estate debt and equity.
- • Hillcrest Finance, founded in December 2013 and co-led since 2015 by Kathleen Corton and Sharon Ann Miller, brings over 35 years of institutional CRE investment experience and operates as a minority- and women-owned investment firm.
- • Leadership at both firms emphasized complementary specialization: Saluda Grade will maintain residential real estate as its core focus while integrating Hillcrest's CRE platform to expand cross-asset class solutions for institutional clients.
- • The transaction represents a strategic shift toward platform expansion rather than organic growth, allowing Saluda Grade to access "attractive opportunities within asset classes across the entire U.S. real estate landscape," according to CEO Ryan Craft.
Summary
Saluda Grade, a New York-based alternative investment firm specializing in asset-based finance with residential real estate focus, has completed the acquisition of Hillcrest Finance, a minority- and women-owned commercial real estate investment firm. The transaction escalates a relationship that began with Saluda Grade's passive minority investment in Hillcrest in June 2024, demonstrating a deliberate progression toward full integration rather than a sudden strategic pivot.
The combined entity now manages $2.5 billion in assets under management. Hillcrest Finance, founded in December 2013 by Kathleen Corton, has been co-led by Corton and Sharon Ann Miller since early 2015. The two executives collectively bring more than 35 years of institutional commercial real estate investment experience. Corton previously led nationwide CRE debt originations at Nomura and managed debt investing at Brickman. Miller's background includes CRE lending positions at TIAA-CREF and equity investment roles at The Connor Group, J.P. Morgan Asset Management, and Rockwood Capital.
Ryan Craft, Founder and CEO of Saluda Grade, characterized the acquisition as "a natural progression of the strong relationship we've built with Hillcrest over the past year." Craft stated that while Saluda Grade will continue prioritizing the residential sector, the integration of Hillcrest's CRE platform will enhance client solutions across the full U.S. real estate landscape. Miller endorsed the combination, praising Saluda Grade's "clear commitment to client service and innovative solutions."
The acquisition reflects a broader trend among alternative investment firms toward platform consolidation and asset class diversification. By integrating a specialized CRE platform with complementary expertise, Saluda Grade positions itself to serve institutional clients requiring multi-asset exposure within real estate while maintaining specialized operational focus within each segment.
The combined entity now manages $2.5 billion in assets under management. Hillcrest Finance, founded in December 2013 by Kathleen Corton, has been co-led by Corton and Sharon Ann Miller since early 2015. The two executives collectively bring more than 35 years of institutional commercial real estate investment experience. Corton previously led nationwide CRE debt originations at Nomura and managed debt investing at Brickman. Miller's background includes CRE lending positions at TIAA-CREF and equity investment roles at The Connor Group, J.P. Morgan Asset Management, and Rockwood Capital.
Ryan Craft, Founder and CEO of Saluda Grade, characterized the acquisition as "a natural progression of the strong relationship we've built with Hillcrest over the past year." Craft stated that while Saluda Grade will continue prioritizing the residential sector, the integration of Hillcrest's CRE platform will enhance client solutions across the full U.S. real estate landscape. Miller endorsed the combination, praising Saluda Grade's "clear commitment to client service and innovative solutions."
The acquisition reflects a broader trend among alternative investment firms toward platform consolidation and asset class diversification. By integrating a specialized CRE platform with complementary expertise, Saluda Grade positions itself to serve institutional clients requiring multi-asset exposure within real estate while maintaining specialized operational focus within each segment.
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