Caruso and TPG will combine their capital and experience to acquire and reposition under-performing properties, according to Caruso, whose venture with TPG marks the first time that Caruso will be investing in multiple existing retail properties. He cites his own firm's expertise in disciplines ranging from design and construction to leasing, marketing and property management—along with TPG's global investment experience and background in real estate.

TPG's senior partners have experience in real estate investing and the turnaround of distressed assets dating back to the early 1990s. In October 2009, TPG, in partnership with the FDIC and a group of investors, acquired a $4.5-billion portfolio of construction development loans and REO assets formerly owned by Corus Bank.

Caruso Capital was founded as a vehicle for acquiring assets as well as pursuing development and other market opportunities in the retail and mixed-use property type. It targets single assets, portfolios and development opportunities and leverages the experience that its parent company, Caruso Affiliated, has gained during 20 years of operations in the retail real estate industry. Caruso Capital is a separate entity that is aligned with but operates independently from Caruso Affiliated.

Rader recently joined Caruso Capital and has an extensive background in private investing. Before joining Caruso he was co-founder and a managing general partner of private equity firms Clarity Partners, Clarity China, and Rader Reinfrank Investors. Clarity and its affiliates manage over $1 billion in capital and invest in a range of industries. Previously Rader was managing general partner in charge of investments for Chartwell Partners.

Caruso Affiliated has created a portfolio of retail and mixed-use properties over the past 20 years that has included new developments as well as redevelopments and property repositioning throughout Southern California. Among its properties are the Grove in Los Angeles, the Americana at Brand in Glendale, the Waterside, Marina del Rey, the Promenade at Westlake, the Lakes at Thousand Oaks and the Commons at Calabasas. The firm also has several projects in development including The Shops at Santa Anita in Arcadia, 8500 Burton Way in Los Angeles, and the company's first luxury destination resort—the Miramar in Montecito.

TPG Capital is the global buyout group of TPG, a private investment firm founded in 1992 with approximately $48 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Fort Worth, Melbourne, Moscow, Mumbai, Paris, Luxembourg, Beijing, Shanghai, Singapore and Tokyo.

Instant Insights /

Caruso JV to Invest $750M in Retail, Mixed

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