opportunistic

KKR's Matt Salem on how the firm is diving deeper into the US lending and growing its retail base.

Starwood now expects less troubled deal flow to emerge in the non-performing-loan space from the current pandemic crisis than it did before. But that should not worry investors which committed to its latest ‘distressed’ fund.

The Miami Beach-based private investment firm will be the third private real estate manager to amass double-digit billions for a single property fund.

Large pools of capital have been raised for distressed strategies, but thanks to government support schemes, finding a home for it is proving a challenge.

With the pandemic opening up secondary opportunities, the Los Angeles-based firm went on a performing loan buying spree for its $650m strategy.

The Starwood chairman says New York and other Democrat-controlled areas need a ‘tsunami of change’ if they are to remain attractive to real estate owners.

After announcing plans to privatize its listed real estate platform earlier this year, the firm will now try to raise its biggest private fund ever.

The private equity firms’ large bet on the hotel owner and operator speaks to the faster-than-expected rebound in the sector, but its pricing remains a point of contention.

The New York-based private equity firm’s CIREP V marks the second higher-risk, higher-return property fund closing to be announced in a week.

The higher returning strategy raised only $35.4bn, but the average fund size hit an all-time high, according to PERE data.