NEW YORK CITY-Opportunistic investors are making their way back to real estate funds in need of cash, the Wall Street Journal reported Wednesday. They’re buying stakes in troubled funds at deep discounts or lending them money in deals that promise steady returns.
In the latest example, locally based Clairvue Capital Parrtners, founded this past spring Clairvue Capital Partners, with $250 million from Goldman Sachs’ private-equity group, was slated to announce Wednesday that it hadt made a $60-million credit line to a $450- million real-estate fund that Normandy Real Estate Partners closed in 2006. At deadline, Clairvue had not yet made a formal announcement of the deal.
"A lot of capital is lining up to take advantage of the opportunity" to recapitalize property funds, Anthony Frammartino, a principal of Townsend Group based in Cleveland, told the WSJ. A total of 40 private-equity real estate funds have gone back to their original investors for additional capital since last year, but only a handful have been successful. That gives Wall Street firms an opportunity to step in. Click here for the complete article.
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