EQT to buy Redwood Capital in bet on US apartment properties

ONE of Europe’s largest private equity firms, EQT, which has ties to the Wallenberg family, has agreed to buy Redwood Capital Group, a Chicago-based owner of apartment communities.

The Redwood Capital team will combine with EQT Exeter, Stockholm-based EQT’s real estate arm, according to a statement Friday (May 13) that confirmed an earlier Bloomberg News report. Closing is expected in the third quarter. 

Redwood owns about 30 US rental properties, in states including Arizona, Florida, Georgia and Texas, according to its website. The closely held company has more than US$1.7 billion of assets under management. 

“Expanding our multifamily offering is a crucial step in our growth,” Ward Fitzgerald, head of EQT Exeter, said in the statement. “This combination offers a fantastic opportunity to build on the significant track records of both our firms.” 

Demand for apartment living is high as soaring US home prices and rising mortgage rates force many people to remain renters. Property investors such as Blackstone have been scooping up multifamily portfolios across the country in a bet on continued rent growth.

EQT Exeter has more than 1,800 properties worldwide. It invests in everything from warehouses to offices, life sciences centers and housing. BLOOMBERG