Global investment firm EQT has reached an agreement to acquire Chicago-based Redwood Capital Group (RCG), a multifamily core-plus and value-add investment manager.
RCG was founded in 2007 by David Carlson and Mark Isaacson and has experience in all multifamily operating areas, including acquisition, asset management, construction management, and property management. The firm has successfully executed 79 multifamily investments in high-growth markets, including 48 investments that achieved more than twice the equity returns across 22,000 units.
The RCG team will combine with EQT Exeter’s existing U.S. multifamily team. The EQT Exeter team, headed by Bryan Lamb, has focused on value-add strategies with development opportunities in markets with strong medical, education, and technology hubs. Together, the two firms have completed $5 billion in transactions, including over $1 billion of high-rise, mid-rise, and garden-style developments.
Following the acquisition, EQT Exeter’s expanded team will include nearly 55 investment professionals as well as RCG’s in-house property management team. The new group will be led by Carlson, who will report directly to Ward Fitzgerald, partner and head of EQT Exeter.
“I am thrilled to welcome David, Mark, and the RCG team to EQT Exeter,” said Fitzgerald. “RCG’s strong cultural fit, impressive performance, aligned investment approach, and similar commitment to sustainability make them the ideal partners as we continue to establish EQT Exeter as a global geo-sector leader across sheds, beds, and meds. Expanding our multifamily offering is a crucial step in our growth, and this combination offers a fantastic opportunity to build on the significant track records of both our firms, as we develop one of the leading residential real estate businesses in the U.S.”
The integrated team will continue to focus on acquiring and developing residential properties across value-add and core-plus strategies. It also plans to pursue diverse residential strategies in sectors including multifamily, student, and workforce housing, as well as self-storage.
“When Mark Isaacson and I founded RCG over 15 years ago, our goal was to create one of the premier real estate investment management platforms in the industry,” said Carlson. “We are proud of what our people, track record, and culture have allowed us to achieve and believe that with this combination with the EQT Exeter multifamily team, and the backing of EQT AB, we will continue to fulfill that vision.”
The transaction closing, subject to customary closing conditions including third-party consents, is expected to take place by the third quarter.
