north america

The Dallas-based private equity firm has moved its head of Asia into a new role and is eliminating 25 positions in the region.

The Canadian investor sees preferred equity as a route to expand and diversify its $12bn residential portfolio amid a financing gap for developers.

The Dallas-based private equity firm has moved its head of Asia into a new role and is eliminating 25 positions in the region.

The high-profile departure comes two years after the New York-based investment bank’s reorganization of its property businesses.

James Jacobs, head of real estate for Lazard’s private capital advisory group, says the easing of restrictions on both sides of the Atlantic is changing institutions’ appetite for risk.

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.

While the New York-based investment manager has been able to deploy its funds rapidly, other groups have not found the opportunity set they expected.

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.

Blackstone and Starwood’s sweetening of an already sweetened offer shows a strong conviction in the sector.