BOSTON and NEW YORK – October 24, 2023 – Bain Capital Special Situations (“Bain Capital”) and Smith Hill Capital (“Smith Hill”), an affiliate of Procaccianti Companies, today announced the formation of a joint venture to originate debt and preferred equity to serve the financing needs of companies and assets in the hospitality sector. The platform launches with the objective of deploying $1 billion of gross capital over the next several years.
The joint venture will initially focus on new loan originations and debt refinancing exclusively in the hospitality space within primary and secondary markets throughout the U.S. In select instances, Bain Capital and Smith Hill Capital will seek to acquire debt and provide rescue capital to high-quality borrowers.
“Rising interest rates coupled with lender pullback in the real estate debt capital markets has created a significant opportunity to deliver flexible financing solutions to high-performing, growth-oriented hospitality borrowers,” said David DesPrez, a Managing Director at Bain Capital. “We believe our joint venture with Smith Hill Capital is tailor-made for this moment in hospitality because it combines decades of industry and capital markets experience with a highly attractive market opportunity.”
“Bain Capital has a long-standing reputation as a premier investor and partner and their team shares our conviction for the hospitality space,” said Brendan McCormick, Managing Principal of Smith Hill Capital. “Smith Hill Capital was formed to build upon Procaccianti Companies’ long and successful track record in the sector. We are appreciative of the opportunity to partner with Bain Capital, and together look forward to executing on our strategy to originate loans and provide liquidity to investors of institutional-quality hospitality assets in demand-driven growth markets throughout the U.S.”
Bain Capital has a long history of supporting the growth of global hospitality companies. The firm’s experience in the sector includes Apple Leisure Group, Hard Rock Hotel Marbella, Hotel Don Carlos, Marriott International, Inc.’s EDITION brand, Ooedo Onsen Holdings, and Pyramid Global Hospitality.
“We are excited to deliver meaningful financing solutions direct to the hospitality sector through this tremendous partnership between Bain Capital and Smith Hill Capital,” said James Procaccianti, Chief Executive Officer of Procaccianti Companies. “This relationship augments our decades of hospitality management and development expertise, resulting in a fully integrated approach designed to help ownership groups overcome the financing and liquidity challenges currently facing the hospitality sector.”
About Bain Capital Special Situations
Bain Capital Special Situations is a global team of investors who have driven value creation for more than 20 years. Bain Capital Special Situations has $19 billion in assets under management and has invested more than $28 billion since our inception in 2002. We provide bespoke capital solutions to meet the diverse needs of companies, entrepreneurs, and asset owners. Across all market cycles, the strategy brings together credit, equity, corporate and real asset expertise to partner where traditional providers cannot. Our dedicated, global team of more than 100 investment and portfolio professionals contribute the local expertise and capabilities that enable these diverse investments. For more information, please visit: https://baincapitalspecialsituations.com/
About Smith Hill Capital
Smith Hill Capital (“Smith Hill” or “SHC”) is the fully-integrated commercial real estate debt investment management business of the Procaccianti Companies (est. 1958). Smith Hill Capital was formed to invest in compelling commercial real estate debt opportunities that exist due to liquidity challenges and dislocation in commercial real estate financial markets. Smith Hill Capital is led by seasoned investment professionals who have multi-cycle investment experience and the tenured skill set to identify opportunities throughout the entire commercial real estate capital structure, spanning from securities to equity ownership.
About Procaccianti Companies
Procaccianti Companies is one of the largest privately-held real estate investment and services firms in the United States. Founded in 1958, our successful track record spans over six decades and our experience includes thousands of transactions representing billions of diversified real estate investments. We are a vertically integrated alternative asset manager with a broad national platform having owned, developed, managed or financed investment real estate in over 300 cities across 42 states.