PHILADELPHIA (Reuters) – Private equity firm TPG Capital and Caruso Capital Partners LLC said on Tuesday that they had formed a joint venture to invest up to $750 million of debt and equity in retail centers and other properties in the western United States.
The Caruso-TPG Partners venture said it would target underperforming retail and mixed-use properties in mature markets.
Rick Caruso, president and chief executive officer of Caruso Affiliated, will be CEO, while Stephen Rader, president of Caruso Capital, will be president of the newly formed venture. Caruso and TPG will have equal representation on the board.
TPG said its senior partners had extensive experience in real estate investing and the turnaround of distressed assets dating back to the early 1990s.
TPG’s portfolio encompasses thousands of retail locations, such as Neiman Marcus [NMRCUS.UL] anchor sites. Current and prior investments in consumer and retail companies include Burger King (BKC.N), Harrah’s Entertainment [HAMLEH.UL], J Crew (JCG.N) and Petco [PETC.UL].
Caruso Capital is a separate entity that is aligned with, but operates independently from retail real estate developer Caruso Affiliated, which has a portfolio of retail centers in Southern California. (Reporting by Jessica Hall; Editing by Lisa Von Ahn)