SAN DIEGO-With the goal of capitalizing on available opportunities to generate outstanding risk- adjusted returns from transactions that require less than $10 million of equity, BruttenGlobal has formed Brixton Capital LP, a private investment firm. The new entity has been designed to further the investment success of Marc R. Brutten, chairman of BruttenGlobal.
Since 1994, Brutten has achieved levered realized returns on his investments of 79.8% via his leadership with several prominent real estate firms. In a prepared statement, he said, “The dearth of capital available to lower-middle-market opportunities from traditional capital sources has created an ideal environment in which to invest at this level.”
Although the new firm will explore investing in a wide variety of asset types, it is especially focused on off-market situations in the Western US that are currently producing cash flow or have the near-term prospect of producing cash flow. Such deals, due to a variety of circumstances, require a well-capitalized partner that can move quickly, understand the opportunity and invest accordingly. Transaction types include direct acquisitions, recapitalizations, distressed note purchases and joint ventures.
To date, the initial deal flow for Brixton Capital has been “brisk,” with the fund boasting a current transaction pipeline that exceeds $75 million. According to Travis King, BruttenGlobal’s chief investment officer, “Our goal is to close on $100 million per year in transactions within the lower-middle market, which we feel provides the most attractive returns on a risk-adjusted basis.”
BruttenGlobal maintains significant ownership interest in Westcore Properties, among other companies. As GlobeSt.com previously reported, Romy Loseke, general counsel to Westcore, spoke at a recent CREW San Diego lunchtime program here of the challenges of the current market condition, sharing that she has had experiences where the firm has had as little as 24 hours to put bids on distressed properties and noting that her company is “incredibly selective” when buying notes and properties.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
