Alvarez & Marsal Capital Real Estate has appointed former Probitas Partners principal Alan Bear as the firm looks to invest in recapitalisation deals, particularly in the hospitality sector.
The Los Angeles firm, founded last year by Hugh Hilton, provides asset and portfolio strategy, restructuring and workout advice to troubled investors and financial institutions, as well as capital for possible investment.
In hiring Bear as managing director, the firm is eyeing the recapitalisation of real estate assets held by financial institutions.
Speaking in the June issue of PERE magazine, Hilton said the firm – an independent affiliate of Alvarez & Marsal – would look to create profit-sharing structures with institutions as a way of breaking through the transaction logjam that has been created by the large bid-ask spread.
“If someone offers 30 cents on the dollar for an asset and it is marked at 80 cents, then someone takes a big loss, while the other party is positioned for a big win with relatively no downside risk,” said Hilton.
Bear was previously a principal at San Francisco-based placement agent Probitas Partners, helping the firm raise more than $2 billion in capital for real estate funds, club deals and separate accounts. He has also worked for advisory firm AGB Consulting, as a managing director at consulting firm The Roulac Group and as director of institutional real estate services at accounting firm Arthur Andersen.