Bain Capital, Smith Hill Capital launch $1B private lending platform

Bain Capital Special Situations and Smith Hill Capital, an affiliate of Procaccianti Companies, have formed a joint venture to originate debt and preferred equity to serve the financing needs of companies and assets in the hospitality sector. The platform launches with the objective of deploying $1 billion of gross capital over the next several years.

The joint venture will initially focus on new loan originations and debt refinancing exclusively in the hospitality space within primary and secondary markets throughout the U.S. In select instances, Bain Capital and Smith Hill Capital will seek to acquire debt and provide rescue capital to high-quality borrowers.

“Rising interest rates coupled with lender pullback in the real estate debt capital markets has created a significant opportunity to deliver flexible financing solutions to high-performing, growth-oriented hospitality borrowers,” David DesPrez, a managing director at Bain Capital, said in a statement. “We believe our joint venture with Smith Hill Capital is tailor-made for this moment in hospitality because it combines decades of industry and capital markets experience with a highly attractive market opportunity.”

Bain Capital has a long history of supporting the growth of global hospitality companies, according to the company. The firm’s experience in the sector includes Apple Leisure Group, Hard Rock Hotel Marbella, Hotel Don Carlos, Marriott International's Edition brand, Ooedo Onsen Holdings and Pyramid Global Hospitality.

“Bain Capital has a long-standing reputation as a premier investor and partner and their team shares our conviction for the hospitality space,” said Brendan McCormick, managing principal of Smith Hill Capital. “Smith Hill Capital was formed to build upon Procaccianti Companies’ long and successful track record in the sector. We are appreciative of the opportunity to partner with Bain Capital, and together look forward to executing on our strategy to originate loans and provide liquidity to investors of institutional-quality hospitality assets in demand-driven growth markets throughout the U.S.”