The seller requested that the purchase price not be disclosed; however, the fund intends to focus on acquisitions with a minimum of $25 million. Opened in 1990, the 377-room resort features 15 acres of Wailea oceanfront.
Sholem, the former chairman and co-founder of DLJ Real Estate Capital Partners, has overseen real estate acquisitions in excess of $6 billion over a 24-year career. He was also head of the real estate principal investment area and real estate investment banking on the West Coast for Goldman, Sachs & Co. He will be based in Los Angeles.
John C. Phelan, a managing partner of MSD Capital, says the new venture complements current investment activities in publicly traded securities and traditional private equity. According to Sholem, while a bicoastal team will look to identify investments requiring a minimum of $25 million, they will consider smaller sizes depending on the particular investment profile. "Our goal is to establish a flexible, long-term vehicle that will invest up and down the spectrum of risk-adjusted returns within the real estate industry," he says. "We want to separate ourselves from the traditional opportunity fund model by offering a more patient and user-friendly co-investment vehicle for real estate operating partners throughout the world."
MSD Capital was founded in 1998. It currently has approximately 70 employees in its New York and Los Angeles offices.
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