Sammons Enterprises Forms Compatriot Capital

Dallas–Sammons Enterprises Inc., one of the nation’s largest privately owned companies with assets approaching $50 billion, has announced the launch of a new real estate strategy under a newly organized subsidiary, Compatriot Capital, Inc.

Paul E. Rowsey was named president and chief executive officer, and Mark D. Van Kirk will become senior vice president of Compatriot. Rowsey and Van Kirk joined Compatriot from E2M Partners, a Dallas-based private equity firm investing in national real estate assets on behalf of individual and institutional investors.

In 2010, Sammons acquired a 30 percent interest in E2M after being a longtime investor in multiple funds managed by E2M and its predecessors. Rowsey and Van Kirk will continue to be actively involved at E2M, serving on its investment committee and assisting in the formation of its funds.

“We believe the current dynamics in the real estate market have afforded a unique opportunity to make direct investments in real estate operating companies,” said Rowsey.  “We intend to identify companies who are market leaders across the spectrum of the real estate industry nationwide. We have already developed a robust pipeline of opportunities and have a number of discussions currently underway.”

Sammons and E2M jointly acquired 50 percent of KDC Holdings in 2008.  The interest in KDC will continue to be a growth-oriented, core holding for Compatriot.

Compatriot will follow an investment strategy of building a portfolio of companies that are complementary with each other, with investments balanced between those that provide a continuing source of current operating cash flow and asset appreciation, as well as proceeds from significant capital events.

According to Rowsey, Compatriot is capitalized to build a business with a net equity value in excess of $1 billion within 10 years.

Sammons Enterprises has been involved in real estate investments since 1938. Sammons formed Sammons Realty Corp. in 1986 to acquire, manage, develop and divest real estate investments for the Sammons family of companies. In 2006, it formed SRI Ventures as an equity fund specializing in investing in real estate opportunities.