Declaration Partners, an affiliate of David Rubenstein’s family office, invested in specialty finance company Peaceable Street Capital as the company looks to expand in the real estate sector, Buyouts has learned.
Declaration made a minority equity investment in Peaceable Street, joining Orangewood Partners and the Bainum family investment firm SunBridge Capital as a long-term financial backer.
“Declaration sees the market opportunity and the strong management team that we have at Peaceable,” Orangewood Partners founder and Peaceable Co-Founder Alan Goldfarb told Buyouts. “We’re excited to have them as our partner going forward to help us scale and institutionalize this business for years to come.”
Peaceable Street Capital, a portfolio company for Orangewood, “provides financing to small and mid-sized income-producing real estate in North America,” according to a press release obtained by Buyouts.
Founded in 2016, Peaceable Street Capital makes investments between $1 million and $20 million, according to its website. The company has provided more than $775 million in preferred equity to the multi-family, self-storage, retail and RV park real estate sectors.
“Families and founders really view us as a strategic partner rather than a financial investor who’s buying their businesses,” Goldfarb said.
Peaceable Street will use the investment to further develop its relationships with clients and build its growth strategy, according to Goldfarb.
“The commercial real estate market in the U.S. is hundreds of billions of dollars in size,” Goldfarb said. “The track record of Peaceable and the success of prior firms have shown very nice, risk-adjusted returns in all market environments.”
In a press release, Declaration Co-founder and Head of Real Estate Todd Rich praised the partnership between Peaceable Street Capital and Declaration. “Peaceable has distinguished itself as a creative provider of equity capital to talented real estate operating sponsors.”
Financial terms on the deal were not disclosed to Buyouts.
Action item: Check out Peaceable Street Capital’s site here.