Capital Trust, Inc. (NYSE: CT) has formed a new fund to invest in invest in "high grade" commercial real estate debt. This will include investment grade securities such as CMBS, REIT debt, and CDOs, as well as whole loans and participations therein.
CT High Grade Partners II, LLC with $667 million of commitments from two institutional investors.
This fund will be managed by CT Investment Management Co., LLC, Capital Trust's wholly-owned investment management subsidiary.
This is actually a limited time vehicle as well. CT High Grade Partners II has a one year investment period subject to extension by mutual agreement. Investments will be funded 100% with the investors' capital utilizing no leverage and CTIMCO will earn a management fee equal to 0.40% per annum on invested assets.
Jon C. Ogg
New 'vulture-esque' fund for investment grade bonds
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