Walton Street Launches Core Debt Platform

CHICAGO--(BUSINESS WIRE)--Walton Street Capital, L.L.C. recently launched a core debt platform to target floating-rate and fixed rate loans secured by stabilized, income-generating assets in major U.S. markets. The platform is seeking to close over $400 million of pipeline loans through the end of the year and expects to have lending capacity in excess of $1 billion by mid-2022.

The core debt platform will focus on lower risk, lower coupon loans than those pursued by Walton Street Real Estate Debt Fund II (“WSREDII”), a Walton Street closed-end fund that targets shorter-term, floating rate loans secured by more transitional and/or less stabilized assets. WSREDII held its final closing with total capital commitments of $1.52 billion, surpassing its target of $1.25 billion.

“Our investment team continues to source attractive lower risk, lower yielding opportunities from our borrower network that do not fit the target investment parameters for WSREDII,” said Richard Ratke, Managing Principal at Walton Street. “The core debt platform satisfies a capital void in our origination strategy and enables our team to immediately capitalize on a broader range of credit opportunities.”

Since inception, Walton Street has invested in over $10 billion of debt opportunities over multiple cycles. “We expect to scale the core debt platform over time and meaningfully grow lending capacity in the coming years,” said Ratke.

About Walton Street Capital, L.L.C.: Walton Street is a private equity real estate investment firm that, since its inception in 1994 through its affiliates, has raised over $14 billion of capital commitments from a broad cross-section of sophisticated institutional investors. Walton Street’s principals have collectively acquired, financed, managed, and sold over $50 billion of real estate and have an average of 21 years of real estate industry experience. Senior management has collectively invested and managed both real estate equity and debt through several real estate cycles over five separate decades and more than 40 years, forging long-term and deep relationships with lenders, public and private real estate owners, operators, brokers, managers, and industry service providers.