Real estate investment firm BH3 Management launches growth equity strategy

Rhea-AI Summary

On March 27, 2023, BH3 Management announced its expansion into private equity with the launch of BH3 Growth Equity. Based in Fort Lauderdale, the firm aims to invest in businesses within real estate and construction sectors, focusing on those with annual revenues exceeding $10 million. BH3 has invested over $3 billion in total, combining equity and debt in commercial real estate since its inception in 2009. Rob Sales has been appointed as Senior Managing Director to lead this growth equity initiative. The firm aims to leverage its industry expertise to assist businesses in optimizing capital structures and accelerating earnings growth.

Positive

• BH3 Management expands into growth private equity, indicating potential for increased revenue streams.
• The firm has a history of investing over $3 billion in commercial real estate, showcasing financial strength.
• Appointment of Rob Sales as Senior Managing Director enhances leadership for the Growth Equity initiative.

Negative

• None.

BH3 Growth Equity provides capital and sponsorship to operating businesses within real estate, construction, and adjacent sectors

FORT LAUDERDALE, Fla., March 27, 2023 /PRNewswire/ -- BH3 Management, a vertically integrated real estate investment manager, operator and developer with offices in Fort Lauderdale, New York and Denver, has expanded into growth private equity. BH3 Growth Equity will provide capital to operating businesses within the real estate, construction and adjacent sectors and add value through BH3's extensive industry experience, relationships, capital markets knowledge and direct synergies with its asset portfolio and operations.

BH3 Management was co-founded in 2009 by Co-CEOs Gregory Freedman and Daniel Lebensohn. To-date, the firm has invested more than $1 billion of equity and more than $2 billion of debt in commercial real estate.

"Through our real estate debt, equity and development businesses, we've had the opportunity to invest in and utilize a vast array of new technologies and products that are changing the way commercial real estate is financed, built and operated," said Freedman. "BH3 Growth Equity will be uniquely positioned as an investment group that not only provides institutional growth private equity capital but also draws from direct relationships and in-field expertise within real estate and construction. The opportunity set is even more intriguing now that access to capital has become more limited for companies."

Lebensohn added "We're extremely pleased to launch this business and announce the hiring of Rob Sales as Senior Managing Director, Head of Growth Equity. Rob and his team will collaborate closely with the rest of the firm to identify, evaluate and drive successful outcomes on these truly differentiated investment opportunities on behalf of our investors."

BH3 Growth Equity seeks to invest in and add value to innovative businesses with primary operations in the U.S. or Canada and annual revenue in excess of $10 million with significant near-term growth prospects. BH3 Growth Equity has the capability to lead or participate in non-controlling equity investments in alignment with talented management teams and existing ownership.

"We are excited to partner with companies that can benefit from BH3's experience, relationships and capital to achieve their growth objectives," said Sales. "Our strategy is predicated on working with management and existing ownership to execute business plans, optimize capital structures, and accelerate earnings growth, thereby directly impacting our investment."

Rob Sales originally joined the BH3 team as Senior Advisor and Investment Committee Member for Crixus BH3 Acquisition Company (Nasdaq: BHAC) in 2021 and is still leading the SPAC's efforts in investment sourcing and research. Prior to joining BH3, Sales served as Principal at Centerline Capital Management, an alternative asset management firm founded by Platinum Equity to make long-term, value-add investments in publicly-traded middle market companies. He also spent over 11 years at Archer Capital, focused on private and public investments across the capital structure of middle market companies. He began his career at Houlihan Lokey, advising companies and creditors in financial restructurings, capital raising, valuations and M&A. Sales graduated from the Roberto C. Goizueta Business School of Emory University with a Bachelor of Science degree in Finance.

Cameron Bean joined BH3 Management in November 2022 as Senior Associate of the Growth Equity team. Prior to BH3, Bean worked as an investment professional at Piney Lake Capital Management, a Connecticut-based hedge fund focused on providing debt and equity capital solutions to middle market companies. Bean began his career within the investment banking division at Robinson Humphrey (now Truist Securities), where he provided M&A, capital raising, and other advisory services to specialty finance and financial technology companies. He graduated from Amherst College with a Bachelor of Arts degree in Economics and History.

BH3 Management's Executive Chairman, Eric Edidin, will be actively involved with BH3 Growth Equity, bringing his decades of public and private equity board governance, advisory and investing experience from his time as an advisor at The Blackstone Group, private equity associate at Morgan Stanley Capital Partners, partner and co-head of credit investments at York Capital, and co-founder of Archer Capital Management.

About BH3 Management
BH3 is a vertically-integrated real estate investment, operations, and development firm, led by co-founders Daniel Lebensohn and Gregory Freedman, and Executive Chairman Eric Edidin, along with 21 additional professionals between its offices in New York City, South Florida, and Denver. The company's core focuses are: Development, CRE Debt Investing, Opportunistic CRE Equity, and Growth Equity for operating business in real estate, construction and adjacent sectors. The firm and its partners place a strong emphasis on value creation and making a positive impact on the communities where they invest. For more information, visit www.bh-3.com.

Media Contact:
Typhanie Stewart
954.873.2204
typhanie@stir-communications.com

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SOURCE BH3 Management

FAQ

What is BH3 Management's Growth Equity strategy?

BH3 Management's Growth Equity strategy focuses on investing in businesses within the real estate and construction sectors, emphasizing those with annual revenues exceeding $10 million and strong growth prospects.

Who is leading BH3 Growth Equity?

Rob Sales has been appointed as Senior Managing Director, Head of Growth Equity, overseeing investment sourcing and strategic collaboration within the firm.

When was BH3 Management founded?

BH3 Management was co-founded in 2009 by Gregory Freedman and Daniel Lebensohn.

What is the investment focus of BH3 Growth Equity?

BH3 Growth Equity seeks to partner with innovative businesses in the U.S. and Canada, aiming to optimize capital structures and drive earnings growth.

How much has BH3 Management invested to date?

To date, BH3 Management has invested over $1 billion in equity and more than $2 billion in debt in commercial real estate.