EQT AB has acquired U.S. residential real estate investment manager Redwood Capital Group. The company’s personnel and assets will be combined with the U.S. multifamily arm of EQT Exeter, the Stockholm-based private equity firm’s real estate division.
Redwood Capital was founded in 2007 by David Carlson and Mark Isaacson. According to Redwood Capital’s website, the company’s portfolio comprises 30 multifamily communities in 15 metropolitan markets in Arizona, Colorado, Florida, Georgia, Illinois, Minnesota, North Carolina, South Carolina and Texas. It also has more than $1.7 billion in assets under management.
Redwood Capital’s 35 full-time personnel will join EQT Exeter’s U.S. multifamily team. The expanded firm will comprise nearly 55 investment professionals, along with Redwood Capital’s in-house property management staff. Carlson will lead the combined group, reporting to Ward Fitzgerald, head of EQT Exeter.
EQT Exeter noted the expanded roster enhances its vertical integration and ability to provide expanded services to residents. Redwood Capital also brought digital analytics that will help the company improve investment and asset management decisions.
The company stated it plans to purchase and develop residential properties across value-add and core plus strategies. It will pursue diverse residential sectors that include multifamily, student housing, workforce housing and self-storage.
EQT Exeter is among the largest real estate investment managers in the world, acquiring, developing and managing logistics/industrial, office, life science and residential properties in Europe, the Americas and Asia. The firm oversees a portfolio totaling more than 350 million square feet across 1,800 buildings.
The transaction is subject to customary closing conditions including third party consents and is expected to close by the third quarter of 2022.