Blackstone to Acquire Capital Trust IM Business

September 27, 2012

On September 27, 2012, Capital Trust, Inc. (NYSE: CT) announced that it had agreed to sell its investment management business, CT Investment Management Co., and its fund co-investments to Blackstone (NYSE: BX) for $20 million.

On September 27, 2012, Capital Trust, Inc. (NYSE: CT) announced that it had entered into a definitive agreement under which an affiliate of Blackstone (NYSE: BX) will acquire its investment management business operated through its subsidiary, CT Investment Management Co., LLC.  Under the terms of the agreement, Blackstone will acquire CT Investment Management and its fund co-investments for $20 million.  After the transaction is closed, CT Investment Management will be integrated into Blackstone’s Real Estate Debt Strategies business.  Simultaneously, Blackstone will purchase an 18.2% equity stake in Capital Trust at a price of $2.00 per share for five million shares of newly issued common stock.  Blackstone will manage Capital Trust following the transaction.  In conjunction with the transaction, Capital Trust will declare a special cash dividend of $2.00 per share, payable to shareholders (other than Blackstone) promptly after the closing using proceeds from the sale.  Capital Trust is a real estate finance company based in New York, New York that specializes in credit sensitive structured products.  Blackstone is a global investment and advisory firm. 


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Investment Manager M&A, Transactions