AXCS Capital Secures Significant Investment to Expand Operations

AXCS Capital Expands with Major Investment from Conversant Capital

Investment aimed at scaling AXCS' business operations and launching new ventures

AXCS Capital, Inc. ("AXCS"), a prominent player in the real estate capital markets, has revealed a transformative strategic investment from affiliates of Conversant Capital LLC ("Conversant"). This investment, totaling up to $102 million, includes $22 million designated as growth capital aimed at expanding AXCS' existing business and the creation of new verticals such as AXCS Investments, their asset management subsidiary.

The partnership signifies a pivotal milestone for AXCS following its acquisition of George Smith Partners ("GSP") in mid-2022. This newfound capital will empower AXCS to further its growth strategy while enhancing the value delivered to clients.

Investment Details and Future Plans

As part of the collaboration, Conversant will initiate new AXCS-managed investment vehicles that will focus on Co-GP and Credit/Preferred Equity opportunities. Strengthening and diversifying AXCS' market offerings has been a crucial undertaking since the acquisition of GSP.

CEO and Co-Founder of AXCS Capital, Evan Kinne, expressed enthusiasm regarding the partnership, stating, "We are excited to partner with Conversant. They understand our business and its potential. This investment marks an important advancement in our evolution."

The excitement was mutual, as Mike Simanovsky, Managing Partner of Conversant, commented on the collaboration: "We are thrilled to welcome AXCS and its team into our ecosystem. We have been greatly impressed with management's proactive steps toward its strategic vision and are eager to support the company's expansion phase."

Launch of New Funds and Continued Development

Conversant's investment coincides with the launch of AXCS' second Co-GP Fund. "Our second Co-GP Fund is crafted to partner with sponsors and developers to generate significant multiples of capital," noted Ed Steffelin, Chief Investment Officer and President of AXCS Capital. He further mentioned plans to introduce an Opportunistic Credit Fund in the early part of next year.

GSP's Growth Focus and Market Outlook

Since being acquired by AXCS, GSP has undergone a transformation to improve collaborative efforts and share resources effectively, setting a robust foundation for national expansion.

Justin Piasecki, President of GSP, highlighted the company's dedication to geographic growth, stating confidently, "We are optimistic that this funding will boost the growth of our offices across various locations. Furthermore, we plan to venture into new markets soon. This includes cities that present fresh opportunities for our services within the next year."

AXCS Capital and Its Vision

AXCS Capital Inc. is redefining the commercial real estate finance world. The firm leverages its proprietary technology and extensive experience through its affiliate, George Smith Partners, to deliver capital markets advisory services to institutional real estate sponsors nationwide.

About Conversant Capital

Conversant Capital LLC is a private investment firm established with a focus on making credit and equity investments across the real estate, digital infrastructure, and hospitality sectors. Their approach spans both public and private markets, showcasing versatility and commitment to strategic growth.

Frequently Asked Questions

What is the amount of investment received by AXCS Capital?

AXCS Capital announced a strategic investment of up to $102 million from Conversant Capital.

What new vertical is AXCS planning to launch?

AXCS plans to launch AXCS Investments, its asset management subsidiary, as part of the investment.

What is the focus of the second Co-GP Fund?

The second Co-GP Fund is designed to invest alongside sponsors and developers to produce significant capital returns.

Which firm partnered with AXCS Capital for this investment?

The investment is made by Conversant Capital LLC, a private investment firm.

What is the vision of AXCS Capital?

AXCS Capital aims to redefine the commercial real estate finance industry with innovative technology and expert advisory services.

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