Company:Colony Capital

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Short description: American private equity real estate firm
Colony Capital, Inc.
FormerlyColony Capital (1991-2017)
TypePublic
NYSE: CLNY (Class A)
Russell 1000 Index component
IndustryPrivate equity real estate
Founded1991; 33 years ago (1991)
FounderTom Barrack
(Chairman)
HeadquartersBoca Raton, Florida, United States
Number of locations
20 [1]
ProductsReal estate
Total assets$50B[1]
Number of employees
350+[1]
WebsiteCLNY.com

Colony Capital, Inc. is an American international investment firm based in Boca Raton, FL.[2] The company has over 350 employees operating in 20 offices around the world. Colony Capital invests in real estate and real estate-related debt investments, real estate-dependent operating companies, non-performing loans, distressed assets and select development opportunities throughout the world. Colony's dealings in distressed assets has led to several sources citing it as an example of vulture capitalism.[3][4][5] Colony Capital is now known as DigitalBridge Group, Inc.

The company is run by businessman Tom Barrack. In 2010, Colony was reported to manage about $30 billion in investments.[6] In 2011, Colony was tied for 3rd largest private equity real estate fund in the world, behind Blackstone Group and Morgan Stanley Real Estate.[7]

History

Early investments

Colony purchased Raffles International on July 18, 2005. This included the 41 hotels and resorts operated under the Raffles Hotel and Swissotel brand names. On January 30, 2006, it acquired Fairmont Hotels and Resorts of Toronto, Ontario with Kingdom Hotels International as a joint partner for United States dollar 3.24 billion.[citation needed] On April 10, 2006, it acquired French professional football team Paris Saint-Germain.[8]

On February 25, 2007, it signed a definitive agreement to take Station Casinos private in a 75%/25% split with members of the founding Fertitta family for US$5.5 billion, or US$90/share. The subsequent economic downturn caused Station Casinos to declare bankruptcy in 2009, and when it emerged in 2011 Colony Capital owned a much smaller portion after providing more cash.[9][10][11] Founder, Chairman, and CEO Thomas Barrack said it "could have been the worst investment ever" in terms of timing.[12]

On November 11, 2008, Michael Jackson transferred the title of his 2,700 acre[6] estate Neverland Ranch to Sycamore Valley Ranch Company LLC, a joint venture between Jackson (represented by attorney, L. Londell McMillan) and an affiliate of Colony Capital.[13][14][15][16] It is still unclear whether Colony Capital has a part in the property.[17] Jackson earned a total of US$35 million when he agreed to the joint venture between himself and Colony Capital.[18][19]

In March 2010, Colony arranged a financing and marketing package for Annie Leibovitz. The New York celebrity photographer had been in financial difficulty and in danger of losing to her previous lender, ArtCapital, the rights to her photographs and negatives and her three Greenwich Village townhouses. ArtCapital's credit was for $24 million.[6] In December 2010, Colony purchased Miramax from Disney with Qatar Investment Authority, Tutor-Saliba Corporation and The Weinstein Company as part of a joint venture called Filmyard Holdings for $663 million.[20][21]

Recent investments

In January 2017, Colony NorthStar, Inc. (NYSE: CLNS) was formed through a tri-party merger between Colony Capital, Inc. (NYSE:CLNY), NorthStar Asset Management Group Inc. (NYSE:NSAM) and NorthStar Realty Finance Corp. (NYSE:NRF).[22]

In September 2017, Colony NorthStar agreed to sell its Townsend Group unit to Aon for $475 million.[23]

In October 2017, Colony entered discussions to purchase The Weinstein Company, a movie and TV production studio that sustained damage after its co-founder, Harvey Weinstein, was accused of multiple counts of sexual harassment over three decades.[24] In the wake of the Harvey Weinstein sexual assault scandal, in late October 2017, it was reported that Colony Capital LLC had proved hesitant to purchase Weinstein Co. after a week of exclusive negotiations. Fortress Investment Group was also in talks to provide a loan to Weinstein Co.[25]

In June 2018, The New York Times reported that Colony North Star had raised more than $7 billion in investments since Donald Trump won the 2016 presidential election.[26] 24 percent of the money came from the United Arab Emirates and Saudi Arabia.[26]

Leadership

Senior Executives

  • Marc Ganzi - President & Chief Executive Officer
  • Ronald M. Sanders - Executive Vice President, -Chief Legal Officer & Secretary
  • Ben Jenkins - Chief Investment Officer of Digital and Chairman of Digital Bridge Holdings
  • Jacky Wu - Executive Vice President - Chief Financial Officer & Treasurer

Managing Directors

  • Kay Papantoniou - Head of Human Resources
  • Kevin Smith - Head of Corporate Strategy and Capital Formation
  • Justin Chang - Global Head of Private Equity
  • Sonia Kim - Chief Accounting Officer
  • Brian Lee - Corporate Treasurer and Head of Corporate Finance
  • Donna L. Hansen - Chief Administrative Officer & Global Head of Tax

Source:[27]

Types of investments

Investment funds

The traditional investment portfolio at Colony are their investment funds, in which retail investors pool their funds, such as with mutual funds. [citation needed]

Casinos and hotels

A large part of Colony LLC investment portfolio involved gaming resorts mainly in the United States. Some were joint projects with Accor Casinos.[citation needed]

  • Resorts International Holdings was created in July 2005 and was headquartered in Las Vegas, Nevada:
    • Atlantic City Hilton
    • Las Vegas Hilton
    • Bally's Casino Tunica

Colony was also involved in investing in luxury hotels and resorts in Asia and North America:

  • Raffles International
    • Raffles Hotels & Resorts
    • Fairmont Hotels and Resorts
    • Swissotel

Other investments

  • Used to co-own the Paris St. Germain football team.[28]

Former properties

  • Resorts East Chicago now Ameristar Casino East Chicago
  • Resorts Atlantic City foreclosed

References

  1. ↑ 1.0 1.1 1.2 https://www.clny.com/
  2. ↑ "Colony Capital, Inc - Contact". http://www.colonyinc.com/contact.php. 
  3. ↑ Petruno, Tom (25 September 2009). "Market frowns at glut of REIT vulture funds". Los Angeles Times. https://www.latimes.com/archives/la-xpm-2009-sep-25-fi-ipo-reits25-story.html. 
  4. ↑ Morrissey, Janet (18 August 2009). "New REITs Pounce on Distressed Mortgage Assets". Time (magazine). http://content.time.com/time/business/article/0,8599,1916998,00.html. 
  5. ↑ Glantz, Aaron (15 October 2019). Homewreckers. ISBN 978-0062869531. 
  6. ↑ 6.0 6.1 6.2 "Private equity firm snaps up chance to help Leibovitz put house in order" by Henny Sender, Financial Times, March 9, 2010 02:00, Retrieved 2010-03-09.
  7. ↑ Perenews.com
  8. ↑ "Paris Saint-Germain changes hands". BBC News. 11 April 2006. http://news.bbc.co.uk/2/hi/business/4898746.stm. 
  9. ↑ "Station Casino Family to Remain in Control". The Wall Street Journal. August 7, 2010. https://www.wsj.com/articles/SB10001424052748703309704575413720661029334. 
  10. ↑ Weinberger, Evan. "Lenders, Colony Capital To Acquire Station Casinos - Law360" (in en). https://www.law360.com/articles/157714/lenders-colony-capital-to-acquire-station-casinos. 
  11. ↑ Jinks, Beth; Church, Steven (June 17, 2011). "Station Casinos Exits Bankruptcy After Almost Two Years in Chapter 11". Bloomberg. https://www.bloomberg.com/news/2011-06-17/station-casinos-exits-bankruptcy-after-almost-two-years-in-chapter-11.html. 
  12. ↑ Perenews.com
  13. ↑ Taletela.com, Michael Jackson's Neverland ranch is sold
  14. ↑ "Neverland May Be Jacko's Ticket to Vegas" (in en). https://www.tmz.com/2008/11/12/neverland-may-be-jackos-ticket-to-vegas/. 
  15. ↑ Ukpress.google.com, Jacko gives up Neverland ranch deed
  16. ↑ News.yahoo.com, Michael Jackson gives Neverland to corporation
  17. ↑ Sbcvote.com
  18. ↑ "Entertainment News, Celebrity News, Celebrity Gossip | E! News" (in en-US). https://www.eonline.com/. 
  19. ↑ "Neverland peters out for pop's Peter Pan" (in en). 2008-11-13. https://www.smh.com.au/entertainment/celebrity/neverland-peters-out-for-pops-peter-pan-20081113-gdt2qq.html. 
  20. ↑ Ben Fritz (December 6, 2010). "The Business Behind the Show". Los Angeles Times. http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/12/miramax-purchase-puts-colony-capital-in-hollywood-spotlight.html. 
  21. ↑ Claudia Eller (December 3, 2010). "The Business Behind the Show". Los Angeles Times. http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/12/ron-tutor-miramax-deal.html. 
  22. ↑ "Document". https://www.sec.gov/Archives/edgar/data/1679688/000167968817000017/clns1231201610-k.htm. 
  23. ↑ Roumeliotis, Greg. "Aon to buy real estate investment firm Townsend from Colony NorthStar". Reuters (Reuters) (1 Sept 2017). https://in.reuters.com/article/us-townsend-m-a-aon-plc/aon-to-buy-real-estate-investment-firm-townsend-from-colony-northstar-idINKCN1BC5WD. 
  24. ↑ Roumeliotis, Greg. "Colony Capital in talks to buy Weinstein Co". Reuters. https://in.reuters.com/article/people-harvey-weinstein/colony-capital-in-talks-to-buy-weinstein-co-idINKBN1CL2E6. 
  25. ↑ Fritz, Ben (October 25, 2017). "Colony Capital's Talks to Acquire Weinstein Co. Hit Snag". The Wall Street Journal (New York City, United States). https://www.wsj.com/articles/colony-capitals-talks-to-acquire-weinstein-co-hit-snag-1508978325. 
  26. ↑ 26.0 26.1 "Who Is Behind Trump's Links to Arab Princes? A Billionaire Friend" (in en). https://www.nytimes.com/2018/06/13/world/middleeast/trump-tom-barrack-saudi.html. 
  27. ↑ "Leadership". https://www.clny.com/about#about-history-banner. 
  28. ↑ "Le Qatar sans limite". Le Parisien. 7 March 2012. http://www.leparisien.fr/psg-foot-paris-saint-germain/le-qatar-sans-limite-07-03-2012-1893594.php. 

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