Fund III had its first closing in June and to date has closed on $109.5 million in investments, according to Capital Trust CEO John R. Klopp. He adds CT hopes to deploy the capital over the next two years and move on with plans for a Fund IV.
"The closing of Fund III extends our leadership position in the real estate mezzanine sector and continues the growth of CT's investment management business," Klopp says.
The purpose of the fund is to provide subordinate debt to properties, portfolios or companies which own large existing income-producing commercial real estate such as office buildings, shopping centers and hotels, Klopp explains. Since the summer of 1997, Capital Trust has been doing so on its own account--totaling approximately $1.4 billion--and began organizing and managing a series of private equity funds to accomplish the same thing in spring 2000, he says.
"It is a pretty large marketplace and we think the mezzanine business is a fundamental part of that marketplace," Klopp says.
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