Barry Sternlicht is looking to sell a minority interest in his private real estate investment firm Starwood Capital Group, according to the Wall Street Journal. A sale could allow Sternlicht, who founded the firm in 1991, to cash out some of his holdings, and would establish a value for the company if it plans to go public in the near term.
In the past, property investment firms tend to seek established large investors to take minority stakes in an effort to raise more money and share in the profits.
Starwood has been upping its presence in New York City of late and currently has $19 billion under management. It is two-thirds of the way to raising a new $3 billion opportunity fund. Sternlicht, which tapped investment bankers at Morgan Stanley to market the shares, has a reputation for focusing on high risk, high reward investments. It’s currently scoring big profits selling off shovel-ready development sites it acquired during the recession. [WSJ] – Adam Fusfeld