Barry Stuart Sternlicht is the co-founder, CEO of Starwood Capital Group, an investment fund with $51 billion in assets under management. He is chairman of Starwood Property Trust, the largest commercial mortgage REIT in the United States, chairman of Starwood Waypoint Homes, he is the co-founder of Starwood and served as its CEO from 1995 to 2005. Sternlicht's style has been described as "intense and impetuous". Sternlicht grew up in Stamford, Connecticut, he is the son of a Holocaust survivor from Maurycy Sternlicht. His father worked as a plant manager. In 1982, he graduated magna cum laude, from Brown University, he worked as an arbitrage trader on Wall Street. In 1986, he received his MBA with distinction from Harvard Business School. After graduation, he went to work for JMB Realty, a real estate investment company, in Chicago where he learned the real estate business. In 1989, after the real estate market collapsed, he went into business on his own. In 1991, at the age of 31, Sternlicht launched Starwood Capital Group, with Bob Faith, to buy apartment buildings that were being sold by the Resolution Trust Corporation, created by the federal government to hold and liquidate the real estate assets owned by failed banks after the savings and loan crisis.
Sternlicht was able to raise $20 million from the families of William Bernard Ziff, Jr. and Carter Burden of New York to fund these purchases. In 1993, Sternlicht sold the apartment portfolio to real estate magnate Sam Zell in exchange for a 20% stake in Equity Residential, which turned out to be a profitable investment. In 1994, in partnership with Goldman Sachs, Sternlicht's company purchased Westin Hotels & Resorts in a $561 million transaction. Sternlicht's innovations included the "W" brand of the Westin Heavenly Bed; the bed was modeled after the bed in Sternlicht's home. In January 1995, Sternlicht purchased Hotel Investors Trust, an almost-bankrupt real estate investment trust, took over as CEO. In 1997, Sternlicht's company acquired ITT Sheraton in a $13.3 billion transaction, topping a bid by Hilton Worldwide. In 2004, Sternlicht was named "America’s Best Lodging CEO" by Institutional Investor magazine. In 2005, Sternlicht was inducted into the Interior Design Magazine Hall of Fame. In 2010, Commercial Property Executive named Sternlicht "Executive of the Year" and "Investor of the Year".
Sternlicht serves on the Board of Directors of the Estée Lauder Companies and Baccarat S. A, he serves as Chairman of the Board of Robin Hood Foundation and is on the boards of the Dreamland Community Theatre, the Juvenile Diabetes Research Foundation’s National Leadership Advocacy Program and the Business Committee for the Arts. He has served on the board of directors of the Pension Real Estate Association and the Real Estate Roundtable, he is a past trustee of Brown University. In 2007, Sternlicht funded a $1 million grant to the Harvard Stem Cell Institute to support research for a cure for diabetes. In 2012, Sternlicht contributed $70,800 to the presidential campaign of Mitt Romney. In 2016, Sternlicht contributed $125,000 to Right to Rise, the political action committee created to support the 2016 election of Jeb Bush. Sternlicht contributed $1,000 to oppose California Proposition 8, which would have banned same-sex marriage in California. Barry Sternlicht was married to Mimi Sternlicht, who he met at Brown University, but they separated in 2016.
In 2016, Sternlicht moved to Florida
The Metreon is a shopping center located in downtown San Francisco at the corner of 4th Street and Mission Street. It is a four-story 350,000 square foot building built over the corner of the underground Moscone Center convention center. Metreon opened on June 16, 1999, as the first of a proposed chain of Sony "urban entertainment centers", aggregating dining, music, exhibitions and movies. Sony intended the ambitious 85 million dollar project to be not only a theme park and gallery for Sony products but a way to reinforce a sophisticated image for the Sony brand. In 2006 Metreon was sold to Westfield, a mall developer, it was refashioned as a food-oriented mall. In 2011, with few exceptions, remaining businesses in the mall were closed. Westfield began a major renovation with an emphasis on dining, including Target creating a large downtown department store that now takes up the second floor. In April, 2012, the Westfield sold the Metreon to Starwood Capital Group. Westfield continues to be responsible for management.
The Metreon's original attractions included a movie theater including both standard and IMAX screens, a multimedia edutainment presentation involving audio-animatronics and 3-D film based on the famous book The Way Things Work by David Macaulay, a play area for young children based on Maurice Sendak's popular children's book Where the Wild Things Are, an arcade and bar, the Airtight Garage, based on French comic artist and graphic designer Jean "Moebius" Giraud's graphic novel of the same name and featuring all original games. In October 2001 Metreon, in partnership with Sony's anime television network, was host to an anime festival, in which numerous anime titles were broadcast across its Action Theatre; as a hub for Sony products, the Metreon hosted special events for the public when new products were released. Consumers flocked to the Metreon for high-demand items such as the PlayStation, PlayStation 2, PlayStation Portable and PlayStation 3. Although Sony opened two additional centers in Tokyo and Berlin in 1999, the original center failed to turn the expected profit.
Despite promising first-year foot traffic of six million, one million ahead of pre-launch projections, by the summer of 2001 "The Way Things Work" was closed. The other major exhibit, "Where the Wild Things Are," closed sometime after July 2004; the Airtight Garage's games proved unpopular, with the exception of HyperBowl, a 3D obstacle course bowling game featuring air-supported bowling balls used as trackballs, they were replaced by other, better-known games, until the arcade was closed reopened as "Portal One," which preserved the decor, full bar, Hyperbowl but was otherwise a more typical arcade. Sunday May 13, 2007 was Portal One arcade's last day of operation; the arcade was relaunched again as a Tilt. The 16-screen Loews theater was a success, becoming one of the most profitable theaters in the country and claiming much of the Metreon foot traffic. By 2002, there were persistent rumors. In February 2006, Metreon was sold to The Westfield Group, the owner of the nearby Westfield San Francisco Centre shopping mall, Forest City Enterprises, a real estate development company.
In early 2009, Sony announced that it would be closing the Sony and PlayStation stores, the last flagship stores located in the mall. Following the announcement, on March 3, 2009, the San Francisco Redevelopment Agency approved plans from owners Westfield Group and Forest City Enterprises to renovate Metreon into a "restaurant-centric" mall. Expected modifications include relocation of the Fourth and Mission street entrance to the center of the block and the installation of a food terrace facing Yerba Buena Gardens; the San Francisco Filipino Cultural Center and the "Tavern on the Green" restaurant were projected tenants. Tavern on the Green, entered bankruptcy on September 11, 2009, "throwing into doubt" the plans for the Metreon location. A seven-day-a-week farmers' market operated as an interim tenant in the former Discovery Channel Store space between May and November 2009, it closed in November 2009. The Metreon building has been redeveloped as a Target store, opened in October 2012. Target is leasing 99,677 square feet.
Other tenants are the AMC theater, now with its own entrance, a food court, Chronicle Books, Massage Envy, National University, The City View event space, various other food purveyors not directly in the court. The Sanraku sushi restaurant and Buckhorn sandwich shop remain in the new food court, along with Jillians, now only accessible from outside; the movie theater has experienced upgrades, with the IMAX auditorium now featuring their new laser projector, the addition of Dolby Cinema and recliner seats. The Metreon 16, an IMAX 3D movie theater and Dolby Cinema theater operated by AMC Theatres, Jillians, a restaurant, are the only attractions remaining open as Target moves in; the Metreon was home to the Walk of Game, loosely based on the Walk of Fame — honorees include Shigeru Miyamoto, Nolan Bushnell, StarCraft, Sid Meier, John D. Carmack, Super Mario, Sonic The Hedgehog, Link from The Legend of Zelda series. A special Walk of Game event took place there in 2005 and 2006, it was unknown that it would continue and is now most obsolete, now that Target is taking up the second floor where the Walk of Game was.
Official website Island Earth Farmers' Market Website Sarkar, Pia. "Metreon gets new lease on life: Purchase by Westfield and Forest City ad
Westin Hotels & Resorts
Westin Hotels & Resorts is an American upscale hotel chain owned by Marriott International. The Westin Brand has over 269 hotels in multiple countries; the first Westin branded hotel was established in 1981 when the company changed the name of Seattle’s Washington Plaza Hotel to the Westin Seattle adjacent to Westin headquarters in Seattle, WA. In 1930, Severt W. Thurston and Frank Dupar of Seattle, Washington met unexpectedly during breakfast at a diner in Yakima, Washington; the competing hotel owners decided to form a management company to handle all their properties, help deal with the crippling effects of the ongoing Great Depression. The men invited Peter and Adolph Schmidt, who operated five hotels in the Puget Sound area, to join them, together they established Western Hotels; the chain consisted of one in Boise, Idaho. Western Hotels expanded to Vancouver, British Columbia and Portland, Oregon in 1931, by 1941 into Alaska and California, assuming management of the Sir Francis Drake Hotel the day after Pearl Harbor was bombed.
By the early 1950s, Western had properties in Montana and Utah. Early management developed each property individually. After more than two decades of rapid growth, many of its properties were merged into a single corporate structure in 1958, focusing on bringing the hotels together under a common chain identity. In 1958, Western Hotels assumed management of three hotels in Guatemala, its first properties outside the US and Canada. Western opened its first hotel in Mexico in 1961; that same year, they opened the first hotel to be both constructed and owned by the chain, The Bayshore Inn in Vancouver. Western Hotels president Edward Carlson is credited with bringing the Century 21 Exposition to Seattle in 1962. Carlson's own napkin sketch of a tower with a revolving restaurant on top, inspired by his visit to the Stuttgart TV Tower, was the origin of the Space Needle; the chain managed the restaurant atop the Space Needle from its opening until 1982. Western Hotels managed a floating hotel aboard the ocean liner QSMV Dominion Monarch, docked in Seattle harbor during the fair.
The company was renamed Western International Hotels in 1963, to reflect its growth outside the US. That same year, the company went public. From November 1, 1965 to 1970, Western International had an agreement with Hotel Corporation of America, under which all 72 hotels of the two chains were jointly marketed as HCA and Western Hotels. From 1968-1973, Western International had a similar joint marketing agreement with UK-based Trust House Hotels. In 1970, Western International was acquired by UAL Corporation, with Edward Carlson becoming president and CEO of UAL, Inc and United Airlines. Western International bought New York's iconic Plaza Hotel in 1975 for $25 million. On January 5, 1981, the company changed its name again to Westin Hotels. In 1987, UAL Chairman Richard Ferris announced a plan to reorganize UAL as Allegis Corporation, a travel conglomerate based around United Airlines, Hertz Rent a Car, Hilton Hotels, Westin and linked by Apollo; this strategy failed and Westin was sold in 1988 to Aoki Corporation of Japan.
In 1994 Aoki sold Westin to Starwood Capital, real estate investment firm and parent of Starwood Lodging, Goldman Sachs, an investment bank. In 1998 Starwood assumed full ownership of the company. Westin claims to have been the first hotel chain to introduce guest credit cards, 24-hour room service, personal voice mail in each room. In the early 21st century, Westin focused on global expansion. Since 2005, the number of hotels grew from 120 locations in 24 countries to over 192 locations in 37 countries as of 2013. Westin markets certain amenities available in its properties to the public under the brand name Heavenly. In 2005, Westin became the first hotel company to gain a national retail store presence when Nordstrom started carrying the Heavenly Bed line in more than 60 stores. Westin refreshed its partnership with United Airlines in 2008. United began offering pillows and blankets from Westin's Heavenly Bed line on select United premium service routes between New York City and California, as well as Westin decorations and scents in some Red Carpet Club lounges.
These amenities were stopped following the merger with Continental Airlines. Beginning in 2013, Delta Air Lines began an extensive partnership with Westin and Starwood Hotels, which included adding Westin Heavenly In-flight Bedding to all Delta One seats on international flight as well as transcontinental flights. In 2016, Marriott International acquired Starwood; the Westin Seattle The Westin Charlotte The Westin Savannah Harbor Golf Resort & Spa The Westin Bonaventure Hotel & Suites Los Angeles Moana Surfrider, A Westin Resort & Spa The Westin Peachtree Plaza Atlanta The Westin Book Cadillac Detroit The Westin Nova Scotian - Halifax, Nova Scotia The Westin Singapore - has the highest hotel lobby in Singapore The Westin Jakarta The Westin St. Francis - San Francisco hotel on Union Square The Westin Excelsior, Rome - The Villa La Cupola Suite, billed at US$30,000 per night, is listed at number 8 on World's 15 most expensive hotel suites compiled by CNN Go in 2012; the Westin Palace Madrid The Westin San Jose - Formerly the Saint Claire and Hyatt Saint Claire.
The Westin Hamburg - opened in 2016 and located in Hamburg's Elbphilharmonie concert hall The Westin Sydney The Westin Resort Nusa Dua, Bali Walt Disney World Swan-Connected with the Walt Disney World Dolphin at Walt Disney World The Westin Bund Center Shanghai
Chief executive officer
The chief executive officer or just chief executive, is the most senior corporate, executive, or administrative officer in charge of managing an organization – an independent legal entity such as a company or nonprofit institution. CEOs lead a range of organizations, including public and private corporations, non-profit organizations and some government organizations; the CEO of a corporation or company reports to the board of directors and is charged with maximizing the value of the entity, which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs aim at achieving outcomes related to the organization's mission, such as reducing poverty, increasing literacy, etc. In the early 21st century, top executives had technical degrees in science, engineering or law; the responsibility of an organization's CEO are set by the organization's board of directors or other authority, depending on the organization's legal structure.
They can be far-reaching or quite limited and are enshrined in a formal delegation of authority. Responsibilities include being a decision maker on strategy and other key policy issues, leader and executor; the communicator role can involve speaking to the press and the rest of the outside world, as well as to the organization's management and employees. As a leader of the company, the CEO or MD advises the board of directors, motivates employees, drives change within the organization; as a manager, the CEO/MD presides over the organization's day-to-day operations. The term refers to the person who makes all the key decisions regarding the company, which includes all sectors and fields of the business, including operations, business development, human resources, etc; the CEO of a company is not the owner of the company. In some countries, there is a dual board system with two separate boards, one executive board for the day-to-day business and one supervisory board for control purposes. In these countries, the CEO presides over the executive board and the chairman presides over the supervisory board, these two roles will always be held by different people.
This ensures a distinction between management by the executive board and governance by the supervisory board. This allows for clear lines of authority; the aim is to prevent a conflict of interest and too much power being concentrated in the hands of one person. In the United States, the board of directors is equivalent to the supervisory board, while the executive board may be known as the executive committee. In the United States, in business, the executive officers are the top officers of a corporation, the chief executive officer being the best-known type; the definition varies. In the case of a sole proprietorship, an executive officer is the sole proprietor. In the case of a partnership, an executive officer is a managing partner, senior partner, or administrative partner. In the case of a limited liability company, executive officer is any manager, or officer. A CEO has several subordinate executives, each of whom has specific functional responsibilities referred to as senior executives, executive officers or corporate officers.
Subordinate executives are given different titles in different organizations, but one common category of subordinate executive, if the CEO is the president, is the vice-president. An organization may have more than one vice-president, each tasked with a different area of responsibility; some organizations have subordinate executive officers who have the word chief in their job title, such as chief operating officer, chief financial officer and chief technology officer. The public relations-focused position of chief reputation officer is sometimes included as one such subordinate executive officer, but, as suggested by Anthony Johndrow, CEO of Reputation Economy Advisors, it can be seen as "simply another way to add emphasis to the role of a modern-day CEO – where they are both the external face of, the driving force behind, an organisation culture". In the US, the term chief executive officer is used in business, whereas the term executive director is used in the not-for-profit sector; these terms are mutually exclusive and refer to distinct legal duties and responsibilities.
Implicit in the use of these titles, is that the public not be misled and the general standard regarding their use be applied. In the UK, chief executive and chief executive officer are used in both business and the charitable sector; as of 2013, the use of the term director for senior charity staff is deprecated to avoid confusion with the legal duties and responsibilities associated with being a charity director or trustee, which are non-executive roles. In the United Kingdom, the term director is used instead of chief officer". Business publicists since the days of Edward Bernays and his client John D. Rockefeller and more the corporate publicists for Henry Ford, promoted the concept of the "celebrity CEO". Business journalists have adopted this approach, which assumes that the corporate achievements in the arena of manufacturing, wer
William Bernard Ziff Jr.
William Bernard Ziff Jr. was an American publishing executive. His father, William Bernard Ziff Sr. was the co-founder of Ziff Davis Inc. and when the elder Ziff died in 1953, Ziff took over the management of the company. After buying out partner Bernard G. Davis, he led Ziff Davis to become the most successful publisher of technology magazines in the 1970s and 1980s, he was born on June 24, 1930 to William Bernard Ziff Sr. a Jewish American publishing executive and vocal proponent of Revisionist Zionism. He was raised in Miami and moved with his family to Sarasota in 1947, he graduated from Rutgers University in 1951 and went to study philosophy in West Germany. In 1953, after the death of his father, he moved to New York City to take command of Ziff Davis Inc. One of his first moves after taking his father's place was buying out co-founder Bernard George Davis who sold Ziff his share to start his own publishing company. Ziff re-directed the company toward enthusiast magazines and trade publications with the acquisition of such titles as Car and Driver, Popular Electronics, PC Magazine, World Aviation Directory and Computer Shopper.
By focusing on specialist/enthusiast publications, Ziff's salesmen were able to directly target advertisers who wanted to market to a specific audience. His approach was successful: manufacturers and retailers were eager to advertise in his magazines at a time when general-interest publications were suffering from declining advertising sales. In 1978, Ziff learned that he was told he had only a few years to live. In 1984, he sold most of the consumer and business magazines for US$712.5 million keeping a few computer titles like PC Magazine. His computer magazines pioneered the format of conducting sophisticated technical tests of computer products. Riding the wave of rapid growth in personal computing, his company became the dominant computer publishing firm in the world. Ziff had wanted to turn the business over to his sons - Daniel and Robert - but they did not desire the responsibility. In 1994, he announced the sale of the publishing group to Forstmann Little & Company for US$1.4 billion.
The sale of the electronic publishing unit occurred later. In 1963, Ziff married Barbara Ingrid Beitz in a Methodist ceremony, his spouse was the daughter of the German industrialist Berthold Beitz and his wife Elsa who were recognized by Yad Vashem as "Righteous among the Nations" for being the rare example amongst ethnic Germans by providing refuge and risking their lives to save Jews during World War II. They had three sons: Dirk Edward Ziff. Ziff, his sons are principals of Ziff Brothers Investments in Manhattan and Greenwich and were listed on the 2012 Forbes 400 list of the richest Americans with an aggregate net worth of $12.6 billion. Ziff married Tamsen Ann Kojis, the daughter of Dr. Ferdinand Kojis and Harriet Henderson, a famous opera soprano who performed under the name Harriet Henders with conductors Arturo Toscanini and George Szell.
Black Hawk, Colorado
The City of Black Hawk is a Home Rule Municipality in Gilpin County, United States. The city population was 118 at the 2010 United States Census, making Black Hawk the least populous city in Colorado; the tiny city is an historic mining settlement founded in 1859 during the Pike's Peak Gold Rush. Black Hawk is a part of CO Metropolitan Statistical Area. Black Hawk is located adjacent to another historic mining settlement in Gregory Gulch; the two cities form the federally designated Central City/Black Hawk National Historic District. The area flourished during the mining boom of the late 19th century following the construction of mills and a railroad link to Golden; the town declined during the 20th century, but has been revived in recent years after the 1991 establishment of casino gambling following a statewide initiative in 1990. In early 2010, the Black Hawk city council passed a law banning the riding of bicycles in the town, drawing a reaction from bicycle advocacy groups and international press.
The ban was overturned by the Colorado Supreme Court in 2013. The town is located along the north fork of Gregory Gulch. Black Hawk was established in 1859. In May 1859 the discovery of gold in Gregory Gulch by its namesake, John H. Gregory, brought thousands of prospectors and miners into the area, combing the hills for more gold veins; the Bobtail lode was discovered the following month. Hardrock mining boomed for a few years, but declined in the mid-1860s as the miners exhausted the shallow parts of the veins that contained free gold, found that their amalgamation mills could not recover gold from the deeper sulfide ores. Nathaniel P. Hill built Colorado's first successful ore smelter in Black Hawk in 1868. Hill's smelter could recover gold from the sulfide ores, an achievement that saved hardrock mining in Black Hawk, Central City, Idaho Springs from ruin. Other smelters were built nearby. Black Hawk's advantageous location on North Clear Creek made it the center of ore processing for the area, it became known as the "City of Mills".
The Colorado Central Railroad extended its line to the town in 1872. A restored depot and locomotive are on display on the east side of downtown. Black Hawk was served by the two-foot-gauge Gilpin Tramway which climbed from Black Hawk to the mines above Central City. Many historic buildings in the town have been restored following the opening of the casinos in 1991; the town has been in heated competition for gambling revenue with its neighbor Central City since casinos opened in both towns in 1991. Development of the area down Clear Creek from the historic Black Hawk townsite lining State Highway 119 has flourished. Gamblers from Denver pass the Blackhawk casinos before they arrive at Central City, and, as a result, Black Hawk has realized much more revenue from gambling than Central City. Gambling in Black Hawk benefits from less restrictive zoning codes. In an attempt to close the competitive gap, Central City built the Central City Parkway from Interstate 70 near Idaho Springs as an alternative route, leading guests first to Central City, to Black Hawk.
The Central City Parkway opened November 19, 2004. However, Black Hawk continues to have three times the number of casinos, generates more than seven times the gambling revenue that Central City does. Although the 1990 statewide referendum allowing casino gambling in Black Hawk was promoted as a way to promote historic preservation in Black Hawk, critics have charged that it has had the opposite effect, that the historic appearance of Black Hawk has been sacrificed to allow construction of the large casinos. Tax from the gambling revenue provides funding for the State Historical Fund, administered by the Colorado Office of Archaeology and Historic Preservation. In February 2013, the Colorado Supreme Court overturned a citywide ban on bicycle traffic through Black Hawk, ruling that the city had failed to comply with state traffic law. In 2010, the city of Black Hawk banned bicycle use on most of the streets in the city; the ban was prompted by a surge in traffic following the change in maximum casino betting limits from $5 to $100.
Black Hawk City Manager Michael Copp said that the city council, which passed the new law, believed it was best for the casinos and their patrons. The penalty for riding a bicycle through Black Hawk was a $68 fine. Bicycle advocacy groups challenged the bike ban, with the case going to the Colorado Supreme Court. State Highway 119 and County Road 279 in Black Hawk are part of the Great Parks Bicycle Route and the Peak to Peak Scenic Byway touring route. According to the United States Census Bureau, the city has a total area of 1.95 square miles. The Black Hawk & Central City Tramway, operated by the cities of Black Hawk and Central City, provides a free shuttle between the two towns. Ramblin Express and Ace Express Coaches provides transportation from Denver; as of the census of 2000, there were 118 people, 54 households, 28 families residing in the city. The population density was 80.9 people per square mile. There were 79 housing units at an average density of 54.2 per square mile. The racial makeup of the city was 84.75% White, 3.39% African American, 0.85% Native American, 5.93% from other races, 5.08% from two or more races.
Hispanic or Latino of any race were 10.17% of the population. There were 54 households out of which 18.5% had children under the age of 18 living with them, 40.7% were married couples living together, 5.6% had a female householder with no husband present, 46.3% were non-families. 33.3% of all households were made up of
Resolution Trust Corporation
The Resolution Trust Corporation was a U. S. government-owned asset management company run by Lewis William Seidman and charged with liquidating assets real estate-related assets such as mortgage loans, assets of savings and loan associations declared insolvent by the Office of Thrift Supervision as a consequence of the savings and loan crisis of the 1980s. It took over the insurance functions of the former Federal Home Loan Bank Board. Between 1989 and mid-1995, the Resolution Trust Corporation closed or otherwise resolved 747 thrifts with total assets of $394 billion, its funding was provided by the Resolution Funding Corporation which still exists to support the debt obligations it created for these functions. The Resolution Trust Corporation was established in 1989 by the Financial Institutions Reform Recovery and Enforcement Act, it was overhauled in 1991. In addition to privatizing the assets of failed S&Ls, FIRREA included three specific goals designed to channel the resources of the RTC toward particular societal groups.
The goals included maximizing opportunities for minority- and women-owned contractors, maximizing available for affordable single- and multi-family housing, protecting local real estate and financial markets from asset dumping. Of the three goals, only the protection of local markets and concerns over dumping was given a great deal of attention; the agency was slow to implement Women-owned Business and Affordable Housing programs. The Resolution Trust Corporation was a 501 organization. In 1995, the Resolution Trust Corporation's duties were transferred to the Savings Association Insurance Fund of the Federal Deposit Insurance Corporation. In 2006, the SAIF and its sister fund for banks—the bank insurance fund —also administered by the FDIC, were combined to form the Deposit Insurance Fund under the provisions of the Federal Deposit Insurance Reform Act of 2005. After emphasizing individual and bulk asset sales, the Resolution Trust Corporation pioneered the use of equity partnerships to help liquidate real estate and financial assets inherited from insolvent thrift institutions.
While a number of different structures were used, all of the equity partnerships involved a private sector partner acquiring a partial interest in a pool of assets, controlling the management and sale of the assets in the pool, making distributions to the RTC based on the RTC's retained interest. The equity partnerships allowed the RTC to participate in any gains from the portfolios. Prior to introducing the equity partnership program, the RTC had engaged in outright individual and bulk sales of its asset portfolios; the pricing on certain types of assets proved to be disappointing because the purchasers discounted for unknowns regarding the assets, to reflect uncertainty at the time regarding the real estate market. By retaining an interest in asset portfolios, the RTC was able to participate in the strong returns being realized by portfolio investors. Additionally, the equity partnerships enabled the RTC to benefit by the management and liquidation efforts of their private sector partners, the structure helped assure an alignment of incentives superior to that which exists in a principal/contractor relationship.
The following is a summary description of RTC Equity Partnership Programs: Under the Multiple Investor Funds program, the RTC established limited partnerships and selected private sector entities to be the general partner of each MIF. The RTC conveyed to the MIF a portfolio of assets which were described generically, but which had not been identified at the time the MIF general partners were selected; the assets were delivered in separate pools over time, there were separate closings for each pool. The selected general partner paid the RTC for its partnership interest in the assets; the price was determined by the Derived Investment Value of the assets, multiplied by a percentage of DIV based on the bid of the selected general partner. The general partner paid its equity share relating to each pool at the closing on the pool; the RTC retained a limited partnership interest in the MIF. The MIF asset portfolio was leveraged by RTC-provided seller financing; the RTC offered up to 75% seller financing, one element of the bid was the amount of seller financing required by the bidder.
Because of the leverage, the amount required to be paid by the MIF general partner on account of its interest was less than it would have been if the MIF had been an all-equity transaction. The MIF general partner, on behalf of the MIF, engaged an asset manager to manage and liquidate the asset pool; the asset manager was paid a servicing fee out of MIF funds, used MIF funds to improve and market the assets. The asset manager was responsible for day-to-day management of the MIF, but the general partner controlled major budgetary and liquidation decisions; the RTC had no management role. After repayment of the RTC seller financing debt, net cash flow was divided between the RTC and general partner in accordance with their respective percentage interests; each of the MIF general partners was a joint venture among an asset manager with experience in managing and liquidating distressed real estate assets, a capital source. There were two MIF transactions involving more than 1,000 loans having an aggregate book value of over $2 billion an