PCCP eyes growth through fund acquisitions

After acquiring Lehman Brothers’ two real estate mezzanine funds in December, PCCP said it will look to take over other debt vehicles.

The debt shop PCCP is eyeing the acquisition of more debt funds as a means of growing the platform after taking over Lehman Brothers’ two mezzanine vehicles.

The Los Angeles-based firm told the February issue of PERE magazine it had been in discussions to acquire or partially acquire other existing groups' funds as it expands its presence from a predominately West coast-focus to one with a national footprint.

Partners William Lindsay and Greg Eberhardt declined to name names but said the strategy was a means of growing “assets under management in reverse”.

In December, PCCP acquired Lehman Brothers two mezzanine funds – Lehman Brothers Real Estate Mezzanine Partners I and II, which closed on $1.1 billion of commitments in 2005 and $668 million in 2008 respectively – for an undisclosed sum. The funds have since been renamed PCCP Mezzanine Recovery Partners I and II.

The deal saw PCCP take over the funds’ 10-strong staff, led by Yon Cho in New York. The full article appears in the February issue of PERE.