Canada-based Colliers International will become majority owner of Minneapolis-based Dougherty Financial Group through a deal to buy controlling interest in four subsidiaries.

Terms of the transaction were not disclosed by publicly traded Colliers.

Colliers said 250-employee, nine-office Dougherty — founded 40 years ago by CEO Mike Dougherty and originates more than $2.5 billion of real estate loans annually and services more than $7 billion — is projected to generate 2019 revenue of $100 million.

"Our partnership with Colliers is an exciting next step in our evolution," said Dougherty executive David Juran, who will assume the role of chief executive and the largest management shareholder of the firm. "We look forward to accelerating our success and growth trajectory in the future by leveraging Colliers' best-in-class platforms and relationships for the benefit of our clients."

At closing, Dougherty mortgage banking will be renamed Colliers Mortgage and will continue to provide specialty debt financing for multifamily, health care and senior housing real estate through U.S. government-sponsored entities. This includes origination, underwriting, asset management and loan servicing for Fannie Mae, the Federal Housing Administration and the U.S. Department of Agriculture. Securities operations of Dougherty will be called Colliers Securities, providing brokerage, investment banking, public finance and other related activities.

"This investment firmly establishes Colliers as one of the leading players in multifamily debt and public finance capital markets in the U.S., marking a significant milestone as we continue to grow and develop our full-service capital markets capabilities," said CEO Gil Borok of Colliers International-U. S. "Combined with our current capabilities in investment sales and debt capital markets, this acquisition provides Colliers important depth, experience and growth opportunities to provide our clients with the best solutions in debt finance and advisory services."

Dougherty's senior leadership will continue to manage operations as "significant shareholders," Colliers said in a statement.

The transaction is expected to close in the first half of 2020.

Dougherty, 78, a onetime college dropout who then served in the Army before graduating from the University of St. Thomas on the G.I. Bill in 1966, also worked in national Democratic politics in the early 1960s.

He joined the former Dain Bosworth as a bond-sales trainee in 1967. He left in 1977 to start what became Dougherty Financial with two former partners.

Dougherty has been an active builder and seller of companies within the Dougherty universe over the years. In 1997, Dougherty sold its Voyageur Cos., a Minneapolis-based mutual-fund manager of tax-exempt government securities, which Dougherty started in 1983, to Lincoln National of Indiana for about $70 million. Two years later, Dougherty sold $6 billion in Voyageur managed assets to the investment-management business of the former Dain Rauscher Corp. for an unspecified price.

Dougherty also has been a multimillion-dollar donor to St. Thomas.

Neal St. Anthony • 612-673-7144