Partnership Targets Troubled Assets

A new partnership seeks to capitalize on distressed market conditions in both equity and debt, which continue to loom around the nation. Private equity firm Alcion Ventures and diversified real estate firm, Golub & Company, just launched a $100m joint venture to pursue troubled properties in turnaround and workout situations. “We expect the market to eventually begin to trough so as to allow us to make informed decisions,” says Martin Zieff, co-founder of Alcion. “Once that condition exists this relationship will afford us a unique platform upon which to take advantage of attractively priced risk.” The two companies maintain a 15-year relationship, of which they say provides a foundation for the success of this new program. The firms say they understand how to maximize value while mitigating risk, a key factor in such a venture. “It’s the property, not the paper,” said Newman. “A well positioned and operated asset, in the end, is necessary to outperform the market.” Desired asset types for the program are diverse, including commercial and residential properties. And with co-investment vehicle opportunities, the potential transaction size is unlimited, the companies say. Golub & Company’s senior vice president, Michael Goldman, will lead the initiative. Write to Kelly Curran.