GoldenTree and GTIS launch real estate debt platform

The former co-head of credit at Lone Star Funds will lead the new joint venture.

GoldenTree Asset Management and GTIS Partners have teamed up to form a joint venture targeting real estate debt globally, PERE's sister publication, Private Debt Investor, reported Thursday.

The GTIS Debt Capital Management will provide development financing and bridge loans ranging from $20 million to $200 million, according to a statement. The platform will provide debt backed by multifamily, office, retail, industrial, hotel and land development, among other property types.

“We have made several successful real estate debt investments with them over the years and believe this new platform will allow us to further capitalize on opportunities in this sector,” Steven Tananbaum, GoldenTree founding partner and chief investment officer, said in a statement.

Both firms declined to comment further.

David Blum, managing director and portfolio manager of real estate credit at GTIS, which was formerly affiliated with GoldenTree, will lead the new partnership. He recently joined GTIS from Lone Star Funds, where he was the co-head of its credit affiliate, LStar Capital. Prior to Lone Star, he spent 11 years at Capmark Finance.

GoldenTree oversees $25 billion in assets and specializes in high yield bonds, leveraged loans, distressed debt and structured products. The asset manager closed its first collateralised loan obligation of the year in April after raising a $600 million fund dedicated to CLOs.

GTIS Partners is a global real estate investment firm with $3.6 billion in AUM and focuses on opportunistic real estate credit on development, transitional and distressed assets.

The New York-based firm started as the real estate arm of GoldenTree in 2005 under the moniker GoldenTree InSite Partners, which the company changed to GTIS Partners in July 2010 when it became an independent entity.