Paulson’s top real estate executives start own firm
Billionaire investor John Paulson’s top real estate executives are launching their own investment firm with $1 billion and the hedge fund manager’s blessing.
Michael Barr, a portfolio manager who headed real estate investing at Paulson & Co, and Jonathan Shumaker, a Paulson partner, will be spinning out the firm’s two existing real estate funds into an independent private equity firm.
Cross Lake, based just a few blocks north of Paulson’s Midtown Manhattan offices, will continue to oversee Paulson’s Real Estate Recovery Fund, LP, launched in 2010, and Paulson Real Estate Fund II, LP, launched in 2013. The two funds have roughly $1 billion in assets. The entire real estate team at Paulson will be moving to Cross Lake
There are benefits to splitting for both sides, say industry analysts noting that the move comes at a time research firm Preqin has said that prices for real assets and competition among bidders are likely to rise in the years ahead.