LOS ANGELES—Sbe Entertainment has partnered with Cain Hoy Enterprises, a new private investment company helmed by Henry R. Silverman, for the company's recapitalization, which has a valuation of $350 million. The investment partnership is launching S Squared, an equity real estate joint venture that will help sbe expand its global hotel, casino, residential and restaurant portfolio through the acquisition of additional assets and development.

The recapitalization of sbe replaces the company's former institutional lenders, including Colony Capital, which initially invested in the company three years ago and has seen the company through its successes. Colony Capital founder Tom Barrack explains, “Our investment in sbe has been very successful and we look forward to working with Nazarian, sbe and their new partners in evaluating future real estate ventures.” Colony recently formed a partnership with Auction.com to fund rental properties.

Along with the partnership, Sam Nazarian, sbe executive chairman, has named Sam Bakhshandehpour CEO and his second in command of global operations. Nazarian and Bakhshandehpour will lead the board of directors, which was also expanded with the addition of Silverman and Cain Hoy senior partners Thomas D. Christopoul and M. Ali Rashid. Sbe founding board members Younes Nazarian and David Nazarian will remain on the board as well.

Nazarian will lead S Squared as majority owner, with Bakhshandehpour and the other sbe executives as minority owners, with Cain Hoy as equal partners on real estate development projects. The partnership will focus on acquiring sbe-anchored properties in primary worldwide markets, with the initial target markets of London, New York City and Austin.