Global investors, including pension funds, have backed Starwood Capital Group to raise $7.55bn (€6.09bn) for its latest global opportunity fund.
IPE Real Assets reported in March last year that Starwood Global Opportunity Fund XI (SOF XI) was close to raising $4bn as US state pension funds commit capital.
Starwood will be investing in distressed debt, value-add acquisitions and corporate transactions in the US and Europe, targeting gross returns of between 17% and 20%.
The private investment firm said Wednesday that the $7.55bn raised at close is the firm’s largest fund in its history.
Barry Sternlicht, Starwood’s chairman and CEO, said: “We are grateful to our longstanding and new investment partners for supporting us in our latest fund.”
Sternlicht said the firm continues to invest prudently and will remain focused on investments with stable and growing cash yields in the US and Europe.
Lanhee Yung, the managing director of capital raising and investor relations, said: “We are proud of our increasingly diversified investor base of over 100 LPs, including pension, sovereign wealth fund, foundation/endowment, wealth manager, family office and high net worth investors from 30 countries within the US, Canada, Asia, the Middle East, South America and Europe.
“SOF XI’s investment program is off to a strong start, with 17 transactions closed through the end of March, representing over $5bn in total assets.”