Starwood Corralls $433M for Debut Energy Fund
Starwood Energy Group, an affiliate of Starwood Capital, surpassed its goal for new energy infrastructure fund.
June 22, 2008
Starwood Capital Group Global wrapped up fundraising for its energy and power affiliate Starwood Energy Group, corralling $433 million for its Starwood Energy Infrastructure Fund. The tally surpassed the firm’s original $400 million goal for the debut vehicle.
The fund, which as already put to work more than $250 million, is targeting investments in North American generation and transmission assets. While energy is a new focus for Starwood, the strategy is not unlike the firm’s approach for more traditional real estate investments.
Brad Nordholm, CEO and managing director of Starwood Energy, noted in a statement that the firm specifically “targets investments in hard assets with strong cash flows,” citing that the approach “reduces downside potential, provides financial flexibility, and broadens exit alternatives."
Madison Grose, Starwood Energy’s vice chairman, made an additional link, stating, "On the development side, we are, in effect, delivering 'build to suit' assets for long term credit counterparty 'tenants.'”
Grose added that the consistent cash flows of the projects being targeted, should allow the firm to access debt capital despite the current dry spell being experienced in the credit markets.
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