New York (HedgeCo.Net) . An affiliate of hedge fund investor giant Blackstone has acquired NY Capital Trust, Inc’s investment management business, operated through its subsidiary, CT Investment Management Co., LLC.
Under the terms of the agreement, Blackstone will acquire CTIMCO and its fund co-investments for $20 million. Blackstone will also manage Capital Trust and purchase an 18.2% equity stake in the company. Following the closing, CTIMCO will be integrated into Blackstone’s Real Estate Debt Strategies business.
Simultaneously with its acquisition of CTIMCO, Blackstone will purchase five million shares of newly issued Capital Trust common stock at a price of $2.00 per share.
Stephen Plavin, CEO of Capital Trust, commented: “We believe that Blackstone — with its unparalleled presence in the commercial real estate marketplace — is the ideal management platform for CTIMCO’s commercial real estate debt businesses and that the combination of two market leaders will create a platform extremely well positioned for growth. This is an excellent result for Capital Trust’s shareholders, CTIMCO and its limited partner investors.”
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