3650 Capital Secures $215 Million to Enhance Investment Strategies
As 2023 unfolds, 3650 Capital has successfully attracted substantial new investments from esteemed entities, highlighting the firm’s growing influence in the commercial real estate sector. The lender and special servicing firm, which boasts an impressive $18 billion loan portfolio, has secured $215 million in fresh capital commitments from the California State Teachers’ Retirement System (CalSTRS) and the Mubadala Investment Company.
Commitments from Longtime Partners
Jonathan Roth, a co-founder and managing partner at 3650 Capital, expressed appreciation for the confidence that both investors have in the firm’s strategies. In a statement, Roth emphasized that the new capital will enable the firm to “pursue a diverse range of capital solutions” tailored for its borrowers and clients. “We look forward to maintaining our long-standing relationships with both institutions as we identify new opportunities to deploy capital into a variety of U.S. markets and projects in the new year and beyond,” he added.
Strategic Deployment of Capital
The newly secured funds will be strategically allocated across various investment platforms within 3650 Capital. Key strategies include:
- Stable Cash Flow Strategy: Aimed at providing long-term, fixed-rate financing for commercial real estate projects.
- Real Estate Credit Solutions Strategy: Focused on developing debt and equity financing packages suitable for short-term, value-added projects.
- Single-Asset Commercial Mortgage-Backed Securities: Tailored loans for single assets and borrowers.
- Transitional Loans: Financing options designed for properties in transition.
The investment specifically from CalSTRS will be directed solely towards the Special Situations Investment Strategy. This strategy prioritizes the placement of equity and structured capital into distressed capital structures and will also facilitate the purchase of loans.
Recent Fundraising Success
This latest financial infusion follows a $430 million capital commitment obtained in the previous months from CalSTRS and Temasek, a Singapore-based institutional investor. Additionally, a $100 million commitment from the South Korean Public Officials Benefit Association, a public pension fund based in Seoul, further underscores 3650 Capital’s robust fundraising efforts.
Strategic Vision for Growth
Toby Cobb, co-founder and managing partner, remarked, “Our proven business model, cyclical real estate experience and creative, all-in-one approach have led to a unique ability to capitalize on these opportunities and offer outsized returns.” This statement illustrates 3650 Capital’s mission to maintain its competitive edge in the evolving real estate financing landscape.
For further inquiries, Brian Pascus can be reached at bp*****@co****************.com.
