Buchanan Street targets debt and equity

Firm CEO Robert Brunswick tells PERE market conditions had ‘accelerated’ its focus on being a principal investment business.

Newport Beach, California-based real estate investment firm Buchanan Street Partners is expanding its business in a bid to capitalise on the current market distress by targeting new debt and equity opportunities.

Robert Brunswick, Buchanan Street chief executive officer, told PERE, the firm was letting go of its financial intermediary business, including phasing out investment sales and brokerage services.  

Instead Buchanan said the firm would “focus solely” on the principal investment business, including providing mezzanine debt and preferred equity, as well as buying performing and non-performing loans. The new strategy would be arranged through its separate accounts and commingled funds, he added.

The current market had “accelerated” the opportunity to focus solely on being a principal, said Brunswick. “Just having capital is the differentiator,” he said. The firm is targeting $1 billion of investments over the next 12 to 18 months, he said, including distressed investments. 

Buchanan Street Partners manages capital for institutions and high-net-worth families. It recently sold a controlling interest in the firm to investment management firm The TCW Group.