Florida-based private investment firm Starwood Capital Group announced late last week it had closed on yet another opportunistic real estate fund for more than $10 billion to invest into distressed real estate.

The latest Starwood Capital Group fund, Starwood Distressed Opportunity Fund XII (SOF XII), is part of a group of the company's opportunistic funds to acquire assets at a significant discount in the current volatile economy. Capital raised exceeded the $7.6 billion raked in by SOF XII's predecessor fund, SOF XI, according to Starwood's news release issued Friday, Oct. 15.  

The company could not have done it on its own, Starwood Capital Chairman and CEO Barry Sternlicht said in the release.

"We are grateful to our new and longtime partners for the trust they continue to place in us as we complete the largest fundraise in Starwood Capital's history," Sternlicht said. "Our sourcing capabilities continue to yield a robust pipeline of investment opportunities, and our market expertise around the globe continues to generate attractive returns for investors. SOF XII is off to an excellent start and we are confident it will continue our tradition of finding valuable investments with over 35% of the fund deployed in closed and approved transactions."

The fund brings Miami-based Starwood's total asset to more than $95 billion under management.

SOF XII is already producing impressive results investing in distressed real estate worldwide, including office buildings, hotels and residential housing. Starwood Capital affiliates have already closed on or committed to 25 transactions, which required more than $3.5 billion worth of equity, according to the statement.

Those SOF XII investments have been in Australia, England, Denmark, Ireland, Italy, Japan, Spain and the United States. A U.S. investment included a single-family rental home platform of more than 4,500 homes, as well as privatization of Extended Stay America.

In all amounts to another success for Starwood Capital as it continues to find opportunities amid the still ongoing pandemic and resulting recession.

"We are thrilled to have reached the fund's hard cap even as we've raised capital for SOF XII during a global pandemic," the company's Capital Raising and Investor Relations Managing Director Michael Lefton said in the release. "We are privileged to work with a diverse and sophisticated investor base, including pensions, sovereign wealth funds, foundations, endowments, wealth managers, family offices and high net worth investors from more than 30 countries."