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Greenwich financier acquires $2.6B GE energy portfolio

August 8, 2018

Starwood Property Trust is acquiring the project finance debt business of GE Capital Energy Financial Services, a General Electric subsidiary that earlier this year vacated its headquarters office in Stamford.

GE is selling a portfolio of more than 50 loans secured by energy infrastructure assets as it continues its dismantling of Norwalk-based GE Capital dating back to 2016, with Starwood Property Trust valuing the transaction at nearly $2.6 billion.

About 20 GE Capital employees will join Starwood Property Trust, which has offices in Greenwich and Miami as a publicly traded affiliate of Starwood Capital Group led by CEO Barry Sternlicht.

It is Starwood Property Trust’s first foray into the energy sector, with Sternlicht saying it was always the intent for Starwood Property Trust to evolve into a “multi-cylinder finance company” in his words.

Starwood Property Trust originated $2 billion in new loans in the second quarter, the highest total in its history, with the company having focused in the past on financing for big residential projects and commercial-backed mortgage securities. Starwood Property Trust earned $109 million in the quarter, off 7 percent from a year earlier.

Alex.Soule@scni.com; 203-842-2545; @casoulman

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