Sternlicht’s Starwood soars in PERE 30

Barry Sternlicht’s Starwood Capital Group was the biggest riser in the 2010 PERE 30 ranking. Two fund closings totalling almost $2.8bn saw the private equity real estate firm launch itself from 30th place to 13th place.

Starwood Capital Group, the Greenwich, Connecticut-based private equity real estate firm led by Barry Sternlicht, was the biggest riser at this year’s PERE 30 ranking.

There was little in the way of major movement in this year’s ranking – PERE’s “apples to apples” ranking of private equity real estate firms by equity raised for blind pool, commingled, value-added and opportunity real estate funds since January 2005.

2010 PERE 30 ranking

But by closing on $1.83 billion for its Starwood Global Opportunity Fund VIII and $965 million for its Starwood Capital Hospitality Fund II in April, the firm managed to increase its total equity closed from $2.95 billion recorded last year to $5.91 billion this time around, enabling it to shoot up the PERE 30 list.

Starwood's capital raising exploits also enabled the firm to become the highest riser since the rankings began three years ago. Lubert-Adler Real Estate held the last record when it rose from 26th position in the PERE 30 2008 to 16th position last year. The firm, led by Ira Lubert and Dean Adler, fell back to 20th position in the 2010 ranking.

Starwood's capital raising exploits also enabled the firm to become the highest riser since the rankings began three years ago.

A total of $207.76 billion was raised by the 30 firms this year. To read how these firm from across the globe managed their totals, click here.

For the third year running New York-based firms, The Blackstone Group and Morgan Stanley Real Estate Investing, came in at positions one and two having raised $24.05 billion and $19.15 billion, respectively.

Of the most significant fallers, Lehman Brothers Real Estate Private Equity, fell from 6th position to 10th position after the platform, which underwent a management buyout following the bankruptcy of Lehman Brothers Holdings in September 2008, handed back all but $300 million of the uncalled capital in its third opportunity fund to investors.

The minimum equity total required to make this year’s ranking fell by $500 million, from $2.95 billion last year to $2.45 billion in 2010, as fundraising around the world, for the most part, dried up.

To learn more about the methodology behind the PERE 30, click here.

The 2010 PERE 30:

1 The Blackstone Group
2 Morgan Stanley Real Estate Investing
3 Tishman Speyer
4 Goldman Sachs Real Estate Principal Investment Area
5 Colony Capital
6 LaSalle Investment Management
7 Beacon Capital Partners
8 The Carlyle Group
10 Lehman Brothers Real Estate Private Equity
11 Richard Ellis
12 Westbrook Partners
13 Starwood Capital Group
14 AREA Property Partners
15 Prudential Real Estate Investors
16 Rockpoint Group
17 daVinci Advisors
18 Grove International Partners
19 Hines
20 Lubert-Adler Real Estate
21 RREEF Alternative Investments
22 Walton Street Capital
23 Citi Property Investors
24 Angelo, Gordon & Co
25 Bank of America Merrill Lynch Global Principal Investments
26 Shorenstein Properties
27 Lone Star Funds
28 Heitman
29 Aetos Capital
30 Rockwood Capital