Starwood Capital Group is eyeing its next major fundraise, with expectations the firm could launch marketing for its ninth global opportunity fund within a matter of months.
The Greenwich, Connecticut-based firm is roughly 65 percent invested in its Starwood Global Opportunity Fund VIII, which closed on $1.8 billion of equity in April 2010. The firm, founded by Barry Sternlicht, also closed on its second global hospitality fund, Starwood Capital Hospitality Fund II, on just shy of $1 billion at the same time.
According to people familiar with the matter, Starwood could launch Starwood Global Opportunity Fund IX within a matter of months, with expectations it would target a similar amount to Fund VIII, or roughly $2.5 billion. Fund VIII originally targeted $3 billion, according to SEC filings, while the Hospitality Fund II targeted $2 billion.
Starwood is said to be around 50 percent invested in its second hospitality fund, although it is not clear whether Sternlicht's firm will soon launch another dedicated hotel vehicle. Sources said the rapid repricing of the hospitality sector has meant a slower outlay of capital than expected. Starwood declined to comment.
Starwood raised capital for its Starwood Global Opportunity Fund VIII and Hospitality Fund II from institutional investors, including the California Public Employees' Retirement System, the New Mexico Public Employees' Retirement Association, the Teachers Retirement System of Louisiana and the Pennsylvania State Employees' Retirement System, among others, according to pension documents.