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 GlobeSt.com, 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.