Conversant Capital LLC, a New Jersey-based private investment fund, will inject up to $102 million into Century City-based real estate finance firm AXCS Capital.
The first installment of this sum will be $22 million allocated to growing AXCS’s existing business as well as financing the launch of its investment vertical, AXCS Investments.
Founded in 2022, AXCS seeks to pursue higher levels of efficiency in capital markets through a tech centric approach.
AXCS acquired George Smith Partners, which does debt and equity financing for commercial properties and is also based in Century City, in June 2022 to push the firm toward nationwide growth.
Justin Piasecki, president of GSP, said this includes growing the firm’s established offices in L.A., New York, Seattle and Dallas as well as plans to expand into new markets including Miami, Atlanta and Chicago in the next year.
AXCS said building out complementary verticals is key to this growth. Conversant’s investment will go toward seeding co-GP (where multiple entities act as general partners on a real estate investment) and credit/preferred equity investment opportunities.
“As capital markets stabilize, we are ramping up recruitment,” Piasecki said in a statement. “Acquisition and construction financing is rebounding, and we’re excited about the market recovery.”
In addition to the first $22 million investment, Conversant has committed up to $80 million to AXCS Investments over time.
This partnership coincides with AXCS’s launch of its second “Co-GP Fund.” The firm also plans to start its “Opportunistic Credit Fund” early in the new year.
