Alcion Ventures and Golub have launched a USD100m joint venture to pursue turnaround and workout situations.
Alcion Ventures and Golub have launched a USD100m joint venture to pursue turnaround and workout situations.
The venture reflects the long-standing strategic relationship between the two firms. The new programme has been set up to capitalize on the looming distressed market conditions in both equity and debt.
Alcion Ventures is a high yield real estate private equity firm, formed by Martin Zieff and Mark Potter (pictured), formerly principals of AEW Capital Management.
Golub is a diversified real estate firm with a 50-year track record of acquiring, developing and operating commercial and residential real estate.
"Alcion has a history of creating value with its partners, applying its thesis driven value creation approach, with unique and durable assets, in major North American cities," says Potter. ‘Our 15-year relationship with Golub & Company provides the foundation for this program to capitalize on what we expect will be some compelling opportunities.’
Michael Newman, Golub president and chief executive officer, says the firm’s hands-on property management and development experience throughout numerous cycles is critical to understanding how to maximize value while mitigating risk.
‘It’s the property, not the paper,’ says Newman. ‘A well positioned and operated asset, in the end, is necessary to outperform the market.’
Zieff adds: ‘We expect the market to eventually begin to trough so as to allow us to make informed decisions. Once that condition exists this relationship will afford us a unique platform upon which to take advantage of attractively priced risk.’
