NEW YORK CITY-Locally based investment firm Capital Trust completed a nearly $30.6 million directly public offering of common stock and warrants to WR Berkley Corp. For the quarter ended March 31, the dompany reported total revenues of $11.5 million and net income of $3.1 million, representing basic earnings per share of 47 cents and diluted earnings per share of 46 cents. For the same period in 2003, Capital Trust reported total revenues of $11.2 million and net income of $2.5 million.

Affiliates of WR Berkley bought 1.3 million shares of Capital Trust’s class A common stock and warrants to purchase an additional 365,000 shares for a total purchase price of $30.6 million. The warrants have an exercise price of $23.40 per share, expire on December 31, 2004 and are not exercisable unless the issuance of the underlying shares is approved by shareholders at the Company’s annual meeting on June 17, 2004. Subject to shareholder approval at the annual meeting and certain other closing conditions, WR Berkley will purchase an additional 325,000 shares for $23.40 per share, totaling 7.6 million.

Capital Trust intends to use the net proceeds from the sale for general corporate purposes, including funding balance sheet investment activity, capital commitments to managed funds, potential business acquisitions and repayment of indebtedness.

“We’re right where we exepcted to be,” John Klopp, Capital Trust’s CEO, tells, adding that he looks forward to working with WR Berkley. “It was a great transaction–a strategic partnership.” As part of the WR Berkley transaction, Joshua A. Polan, a managing director of Berkley Capital LLC, has also been appointed to Capital Trust’s board.

Total assets were $465.8 million at March 31, a $65.9 million–16.5%–increase from $399.9 million at December 31, 2003. Last August, Capital Trust completed its CT Mezzanine Partners III final closing with $425 million of committed equity capital. Fund III makes mezzanine investments. The company also acts as investment manager for CT Mezzanine Partners II LP.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.