Say They'll Pursue Any 'Attractive Opportunities'
Hicks, Muse, Tate & Furst Inc., the Dallas buyout firm, has teamed up with Donaldson, Lufkin & Jenrette to invest in commercial and residential real estate.
In a joint statement Tuesday, the firms said they have formed a venture that will focus on various recovering segments of the real estate market.
The venture will invest in real estate equities, mortgages, and securities.
"Nothing has been ruled out -- we'll look wherever we perceive attractive opportunities," a Hicks, Muse spokesman said.
He wouldn't disclose the amount of capital that Hicks, Muse and DLJ have committed to the venture, or whether they plan to raise additional funds from other investors.
Hicks, Muse traditionally has relied on commercial banks to help finance its buyouts, but it couldn't be learned whether the new real estate venture would tap the loan market for funds.
Over the past four years, Hicks, Muse has completed more than 20 buyouts, worth a total of over $3 billion.
Chief Comes from GE Capital
David Deniger, formerly president and chief executive officer of GE Capital Realty Group Inc., is president and CEO of the venture. He is also a partner.
In the joint statement, the firms said the venture will provide funds to capital-constrained segments of the real estate industry, and will seek strategic alliances with established real estate operators.
The venture will invest in unrated mortgage securities and portfolios of underperforming assets, as well as individual assets with significant value-enhancement potential, the firms said.