Capital Trust, Inc.
Capital Trust, Inc. recently announced that the firm has formed a $200 million private investment fund, CT Mezzanine Partners I, the first, under a new investment management venture with Citigroup Investments Inc., an affiliate of Citigroup Inc. Capitalized with $150 million from an affiliate of Citigroup Investments and $50 million from Capital' Trust, CT Mezzanine Partners will immediately commence making high-yield commercial real estate "mezzanine" investments. The firms have committed an additional $312.5 million (up to $250 million from Citigroup and $62.5 million from CT) to launch the venture's second fund, CT Mezzanine Partners II, contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"
contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent minimum total equity commitments of $500 million.
CT Mezzanine Partners I and II and all future funds will he managed exclusively by Capital Trust's wholly-owned subsidiary, CT Investment Management Comp. Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc., a Citigroup subsidiary, acted as financial advisor to the venture and has been named exclusive placement agent for CT Mezzanine Partners II, which is expected to commence its third-party capital raising efforts within 60 days.
Under the new venture, CT and Citigroup Investments plan to capitalize and manage a series of private investment funds Noun 1. investment funds - money that is invested with an expectation of profit
assets - anything of material value or usefulness that is owned by a person or company focusing on high-yield commercial real estate "mezzanine" investments.
Capital Trust has agreed to provide the funds a right of first offer on all mezzanine financing Mezzanine Financing
A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the opportunities sourced by CT during the funds investment periods.
To facilitate its entry into the investment management business and conversion to REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). status, Capital Trust is modifying the terms of its existing $150 million, 8.25 percent step-up convertible trust-preferred securities A Trust preferred security is a security possessing characteristics of both equity and debt issues. A company creates trust-preferred securities by creating a trust and issuing debt to the new entity, while the trust issues the trust preferred securities. . This will entail changes in the coupon structure and call provisions, and a reduction in the conversion price from $11.70 to $7 per share, with no increase in the total number of shares issuable on conversion.