REAL ESTATE NEWS

Starwood Capital Group has closed its Distressed Opportunity Fund XIII, which will focus on real estate assets in the U.S. and other global markets, raising over $10.2 billion. This brings its total assets under management to roughly $130 million.

The fund was backed by over 300 investors who are based in roughly 20 different countries. Starwood and related parties have committed a smaller $100 million to the pool.

With Starwood labeling it a distressed fund, real estate assets through the United States and Europe will be the main focus, with keeping tabs on the Asia Pacific region selectively. The asset classes of interest include data centers, industrial, hospitality and residential.

So far, Fund XIII has committed more than $3 billion in equity across 20 transactions. That capital has been poured through all three of the targeted regions, with heavy investments in housing, data centers and industrial.

"With a growing team of more than 350 investment professionals and an expanding global footprint, we have the talent, scale and conviction to continue delivering great performance," Jonathan Pollack, president of Starwood, said in a statement.

"We are seeing strong tailwinds driven by slowing supply in traditional real estate asset classes and tremendous growth in technology and manufacturing – this is an exciting time to be investing in real estate."

Since Starwood's founding in 1991, the Miami-based firm has raised more than $95 billion in capital. In 2025, the company fetched $2.86 billion through private credit vehicles to deploy in support of real estate financing solutions.

Currently, the fundraising strength lies in industrial, according to a recent Colliers report. The asset class accounted for 47%of global real estate fundraising in the first quarter, up sharply from 16% in 2025. It comes as fundraising becomes more challenging across the board due to the higher cost of capital with elevated interest rates — but industrial is showing resilience.

Source: GlobeSt/ALM