Conversant Capital Makes Strategic Investment Up To $102M Into AXCS Capital

Axcs Capital, an CRE investment and technology firm, has secured capital investment up to $102 million from Conversant Capital, Commercial Observer has learned. 

Conversant Capital is a private investment firm focused on credit and equity investments within the real estate, digital infrastructure and hospitality sectors in both the public and private markets.  The firm is expected to seed new AXCS-managed investments that use co-general partner financing structures around debt and preferred equity CRE deals.  

The investment from Conversant Capital includes a pledge to use $22 million of “growth capital” to fund AXCS’s new business verticals, notably AXCS Investments, which is expected to receive an additional investment up to $80 million from Conversant Capital over time. 

Evan Kinne, CEO and co-founder of AXCS Capital, said in a statement that his firm is excited to partner with Conversant Capital because “they understand our business and its potential.”

“The investment with Conversant represents an important step forward in the evolution of our business,” said Kinne. 

AXCS is the parent company of George Smith Partners, a CRE capital markets advisory firm it purchased in June 2022. The entity of AXCS and George Smith Partners invests both credit and joint-venture equity into commercial real estate projects. George Smith Partners had arranged more than $65 billion in financing since its founding in 1992. 

Justin Piasecki, president of George Smith Partners, said in a statement that the $102 million strategic investment from Conversant Capital will “support the growth” of the firm’s offices located 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 six to 12 months,” he added, speaking to the use of the investment capital. 

AXCS representatives added that the firm plans to launch its second Co-General Partner Fund this year, capitalized at roughly $100 million, and that the firm will launch an Opportunistic Credit Fund in early 2025, capitalized at $200 million. 

Brian Pascus can be reached at bpascus@commercialobserver.com