AXCS Capital Announces Strategic Investment from Conversant Capital

Capital to scale AXCS' business and launch AXCS Investments

LOS ANGELES, Nov. 20, 2024 /PRNewswire/ -- AXCS Capital, Inc. ("AXCS"), a leader in real estate capital markets and owner of George Smith Partners ("GSP"), today announced a strategic investment from affiliates of Conversant Capital LLC ("Conversant") in an amount up to $102mm. Conversant's investment includes $22mm of growth capital to expand AXCS' existing business and facilitate the launch of new business verticals, including AXCS Investments, AXCS' asset management subsidiary. Conversant has additionally committed to work with AXCS Investments to invest up to $80mm over time.

Conversant's investment represents a key milestone in GSP's evolution following the June 2022 acquisition by AXCS and will enable it to continue its growth strategy for the business while continuing to drive client value.

As part of its investment, Conversant will seed new AXCS-managed investment vehicles focused on Co-GP and Credit/Preferred Equity opportunities. Building out complimentary verticals has been a key focus since AXCS' acquisition of GSP.

"We are excited to partner with Conversant. They understand our business and its potential. The investment with Conversant represents an important step forward in the evolution of our business", said Evan Kinne, CEO/Co-Founder of AXCS Capital and Managing Director at George Smith Partners.  

"We are thrilled to welcome AXCS and its team into the Conversant ecosystem," said Mike Simanovsky, Managing Partner of Conversant. "We've been impressed with the concrete steps management has taken toward its strategic vision and are excited to support the Company's next phase of expansion."

Conversant's investment comes as AXCS launches its second Co-GP Fund. "This is our second Co-GP Fund, designed to invest alongside sponsors and developers to generate multiples of capital," noted Ed Steffelin, Chief Investment Officer and President of AXCS Capital. "AXCS additionally plans to launch an Opportunistic Credit Fund in early 2025."

GSP's Continued Growth and Recent Developments

Since AXCS' acquisition in 2022, GSP has restructured to enhance collaboration and shared resources to position the firm for nationwide growth.

Justin Piasecki, President of GSP, emphasized the company's focus on geographic expansion: "We are optimistic that this funding will support the growth of our offices in Los Angeles, New York, Seattle, Dallas, and Washington D.C. We also plan to expand into new markets, including Miami, Atlanta, and Chicago, within the next 6-12 months."

Piasecki added, "As capital markets stabilize, we are ramping up recruitment. Acquisition and construction financing is rebounding, and we're excited about the market recovery."

About AXCS Capital

AXCS Capital Inc. is a commercial real estate finance firm redefining the industry. Through its affiliates, AXCS manages investment vehicles and combines its proprietary technology with decades of experience to provide capital markets advisory to institutional real estate sponsors nationwide via its subsidiary, George Smith Partners. www.axcscapital.com.

About Conversant Capital

Conversant Capital LLC is a private investment firm founded in 2020. The firm pursues credit and equity investments within the real estate, digital infrastructure and hospitality sectors in both the public and private markets. Further information is available at www.conversantcap.com.

SOURCE AXCS Capital