Finance CMBS
Dec 4, 2007
By: Gail Kalinoski, Contributing Editor
Carlton Strategic Ventures, the principal transaction group of The Carlton Group, recently completed its first acquisition as part of its ongoing plan to invest $1 billion in high yield commercial and residential distressed mortgage debt.
The amount of the acquisition wasn’t released today, but the firm described it as a performing whole loan in a secondary market that was acquired at a substantial discount from a major investment bank. Chairman Howard Michaels, one of the leaders of the CSV distressed debt group, said in a press release today that the firm intends to close another $150 million in distressed debt acquisitions this month.
Carlton will be investing its own capital and has also formed a joint venture with an unnamed hedge fund to seek out more distressed mortgage debt deals.
Michaels is joined by Michael Campbell, partner, and Keith Stein, president, a former Weil, Gotshal & Manges L.L.P. attorney who previously ran Kimco’s Opportunity Fund, in leading the CSV distressed debt group. Carlton has beefed up its roster of investment specialists as it goes hunting for bargains. The firm said it has added six distressed debt professionals to its investment team. It recently hired John Jackson, who oversaw $800 billion of Fannie Mae residential mortgages at the Office of Federal Housing Enterprise Oversight, to run the Washington, D.C., office.
Carlton has 40 professionals in its New York City office and seven former bank executives who trade loans in the firm’s West Palm Beach, Fla., office. The company has also added senior underwriters from Bear, Stearns & Co. and JPMorgan Chase & Co. to work with its team of investment bankers on reaching out to the commercial lenders, servicers, mezzanine originators and other lenders who have billions of dollars of mortgages they can’t securitize, according to the Carlton release.
Carlton is one of several firms, including banks, hedge funds and private equity firms that have announced in recent weeks new funds to seek out opportunities created by the subprime meltdown and subsequent credit crunch in the capital markets. In a Nov. 15 story by Nancy Leinfuss, Reuters reported that GSC Group was getting ready to launch a new fund that would invest in distressed subprime residential mortgage-backed securities. The Reuters story also noted that Goldman Sachs Group and BlackRock Inc. were also raising capital for distressed securities funds.
In a Dec. 1 CPN story, several commercial real estate executives predicted there would be opportunities in the new year. Duke Realty Corp. COO Robert Chapman noted that developers and investors that had been conservative with debt in the past were now in a strong position to invest.
By: Gail Kalinoski, Contributing Editor
Carlton Strategic Ventures, the principal transaction group of The Carlton Group, recently completed its first acquisition as part of its ongoing plan to invest $1 billion in high yield commercial and residential distressed mortgage debt.
The amount of the acquisition wasn’t released today, but the firm described it as a performing whole loan in a secondary market that was acquired at a substantial discount from a major investment bank. Chairman Howard Michaels, one of the leaders of the CSV distressed debt group, said in a press release today that the firm intends to close another $150 million in distressed debt acquisitions this month.
Carlton will be investing its own capital and has also formed a joint venture with an unnamed hedge fund to seek out more distressed mortgage debt deals.
Michaels is joined by Michael Campbell, partner, and Keith Stein, president, a former Weil, Gotshal & Manges L.L.P. attorney who previously ran Kimco’s Opportunity Fund, in leading the CSV distressed debt group. Carlton has beefed up its roster of investment specialists as it goes hunting for bargains. The firm said it has added six distressed debt professionals to its investment team. It recently hired John Jackson, who oversaw $800 billion of Fannie Mae residential mortgages at the Office of Federal Housing Enterprise Oversight, to run the Washington, D.C., office.
Carlton has 40 professionals in its New York City office and seven former bank executives who trade loans in the firm’s West Palm Beach, Fla., office. The company has also added senior underwriters from Bear, Stearns & Co. and JPMorgan Chase & Co. to work with its team of investment bankers on reaching out to the commercial lenders, servicers, mezzanine originators and other lenders who have billions of dollars of mortgages they can’t securitize, according to the Carlton release.
Carlton is one of several firms, including banks, hedge funds and private equity firms that have announced in recent weeks new funds to seek out opportunities created by the subprime meltdown and subsequent credit crunch in the capital markets. In a Nov. 15 story by Nancy Leinfuss, Reuters reported that GSC Group was getting ready to launch a new fund that would invest in distressed subprime residential mortgage-backed securities. The Reuters story also noted that Goldman Sachs Group and BlackRock Inc. were also raising capital for distressed securities funds.
In a Dec. 1 CPN story, several commercial real estate executives predicted there would be opportunities in the new year. Duke Realty Corp. COO Robert Chapman noted that developers and investors that had been conservative with debt in the past were now in a strong position to invest.
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