Starwood Capital Group is a private investment firm that specializes in global real estate, energy investments, and other asset classes. The company has become one of the largest investors in the world with over $55 billion in assets under management as of 2020.
The interest rates associated with Starwood Capital Group investments vary depending on the type of investment being made. Generally speaking, Starwood offers competitive interest rates for its debt obligations and equity investments. The company typically pays an annual coupon rate on its bonds ranging from 3-7%. For example, a 5 year bond issued by Starwood may have an annual coupon rate of 4%. On the equity side, Starwood will often pay out dividend yields or distributions based on current market conditions and the performance of their portfolio companies. These amounts can range from 0% to 10%, but are usually around 2-4%.
In addition to these standard interest rates for debt and equity securities, Starwood also offers alternative financing options such as mezzanine loans which may include higher returns than traditional debt instruments due to increased risk levels associated with them. Additionally, certain tax credits may be available depending upon location which could provide additional benefits to potential investors when considering investing in any given project or fund managed by Starwood Capital Group.
