EQT to buy residential investment manager Redwood Capital

EQT to buy residential investment manager Redwood Capital
Image: EQT

Sweden-based global investment company EQT AB has agreed to acquire Chicago-headquartered real estate investment manager Redwood Capital Group (RCG).

Founded in 2007 by David Carlson and Mark Isaacson, RCG is a vertically integrated, core plus and value-oriented residential investment management firm, experienced in all operating areas, including acquisition, asset management, construction management and property management.

RCG’s current portfolio consists of 30 multifamily communities spanning of 15 metropolitan statistical areas, including Arizona, Florida, Georgia and Texas, according to its website.

The Redwood Capital Group team will combine with EQT Exeter’s existing US multifamily team.

The EQT Exeter multifamily team, led by Bryan Lamb, has focused on value-add strategies, primarily with development opportunities located in strong medical, educational, and technical hubs across the US.

”Together, RCG and the EQT Exeter Multifamily team have completed transactions totaling USD 5 billion GAV, including over USD 1 billion of high-rise, mid-rise and garden-stye development projects. Following this combination, EQT Exeter’s expanded multifamily team will consist of nearly 55 experienced investment professionals, in addition to RCG’s in-house property management team, making EQT Exeter one of the strongest vertically integrated real estate firms,” said EQT in a statement.

The new group will be led by RCG’s co-founder, David Carlson, who will report directly to Ward Fitzgerald, head of EQT Exeter.

Ward Fitzgerald, Partner and Head of EQT Exeter, said, “I am thrilled to welcome David, Mark and the RCG team to EQT Exeter. RCG’s strong cultural fit, impressive performance, aligned investment approach and similar commitment to sustainability make them the ideal partners as we continue to establish EQT Exeter as a global geo-sector leader across sheds, beds, and meds. Expanding our multifamily offering is a crucial step in our growth, and this combination offers a fantastic opportunity to build on the significant track records of both our firms, as we develop one of the leading residential real estate businesses in the US.”

David Carlson, Co-Founder and CIO of Redwood Capital Group, said, “When Mark Isaacson and I founded RCG over 15 years ago, our goal was to create one of the premier real estate investment management platforms in the industry. We are proud of what our people, track record and culture have allowed us to achieve and believe that with this combination with the EQT Exeter multifamily team, and the backing of EQT AB, we will continue to fulfill that vision”