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Obsidian secures strategic investment from renowned real estate investment firm
DALLAS – March 18, 2024 – Obsidian Capital Partners (“Obsidian”), an emerging multifamily real estate firm focused on opportunities in primary and secondary markets across the South and Midwest, has closed a strategic investment with global real estate private equity firm, Starwood Capital Group (“Starwood”).
Starwood will invest in Obsidian through its Starwood Impact Investors (“SII”) platform—a return-driven investment platform managed by the firm that is dedicated to investing in commercial real estate opportunities controlled by undercapitalized and underrepresented partners. The partnership with Obsidian will be SII’s inaugural investment. Terms of the transaction were not disclosed.
"We are pleased to partner with a best-in-class institution that is committed to our firm’s strategy and growth. This partnership invaluably differentiates our firm within the middle market," said Anthony Perry, co-founder of Obsidian.
Through this collaboration, Starwood will invest in Obsidian, provide programmatic capital, and offer strategic advice to Obsidian’s leadership through board participation and infrastructure support.
"This transaction is a significant step in the evolution of our business. Combining our nimble and differentiated approach to the asset class with Starwood’s resources and relationships will supercharge our trajectory,” said Alan-Michael Hill, co-founder of Obsidian.
“We’re thrilled to announce this partnership with Obsidian, which is a key milestone and the first of several investments we expect in this space. This collaboration not only supports our belief in Obsidian’s potential to become a market leader, but it also underscores our dedication to partnering with institutionally minded emerging sponsors with significant upside,” said Bakari Adams, Managing Director at Starwood Capital and Head of Starwood Impact Investors. “We look forward to working closely with Alan-Michael and Anthony to help maximize their firm’s success. Their strong track records and complementary skillsets have been vital to Obsidian’s achievements thus far and we are pleased to partner with them on this next phase of growth.”
About Obsidian Capital Partners
Obsidian Capital Partners is an independent multifamily investor and operator. Obsidian focuses on repositioning assets in primary and secondary markets across the South and Midwest. The firm targets low-to-medium risk alternative investments that improve the quality of experience for residents and drive outsized returns for investment partners.
About Starwood Impact Investors
Starwood Impact Investors is a return-driven investment platform whose mission is to enhance the growth of historically undercapitalized and underrepresented partners in real estate. SII is dedicated to investing in commercial real estate opportunities controlled by emerging owners and operators across the United States. SII executes across four distinct channels: Platform Investments, Joint-Ventures, Ecosystem, and Education. The platform was launched by Starwood Capital Group in 2023 and utilizes capital from the firm's existing investment vehicles. Starwood Impact Investors is led by Bakari Adams, Managing Director at Starwood Capital Group.
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have 5,000+ employees. Since its inception in 1991, Starwood Capital Group has raised over $75 billion of capital, and currently has ~$115 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $95 billion of capital since inception and manages a portfolio of over $27 billion across debt and equity investments. Over the past 32 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at www.starwoodcapital.com.