Contact:
Charlie Wu
Chip Douglas
617-570-4400

BAYNORTH CAPITAL LLC CLOSES SEVENTH REALTY FUND AT $472.5 MILLION; EXPECTS TO BUY OVER $1.7 BILLION OF REAL ESTATE

FOR IMMEDIATE RELEASE

BOSTON, MA, March 12, 2007 – BayNorth Capital LLC announced it has recently closed on $472.5 million for BayNorth Realty Fund VII. The new fund – the second since BayNorth Capital spun out from Charlesbank Capital Partners, LLC in July 2004 – secured capital from 40 limited partners, including endowments, pension funds, foundations, banks and family trusts. Using the capital raised, BayNorth expects to invest in over $1.7 billion of real estate nationwide.

BayNorth typically invests in equity or mezzanine debt structures, often in joint ventures with local developers or operating partners. The firm is focused on creating long-term relationships with successful developers and property owners over the course of several deals. Investments may include acquisitions, development and redevelopments, repositionings, and recapitalizations, spanning a range of property types including office, residential, hotel, industrial/service, self-storage and retail. Investing between $15 million and $50 million per transaction, BayNorth expects to have most of the fund invested over a four-year period.

“We appreciate the importance of quality relationships, and of being nimble and entrepreneurial in how we invest capital,” said Chip Douglas, Co Founder of BayNorth. “We continue to follow a disciplined approach to investing which has helped us generate a successful, long-term track record.”

“Our strategy of raising a mid-sized fund, similar in size to Realty Fund VI which closed at $430 million in December 2004, allows us to seek more attractive risk-adjusted returns for our clients,” said Charles F. Wu, Co Founder of BayNorth. “We are pleased that our previous investors have reinvested in Fund VII, and welcome 12 new limited partners to Fund VII.”

Mr. Douglas, Mr. Wu and Charles Flint are the Managing Directors who will lead the team of investment professionals in investing the fund’s capital. With an average of 19 years of experience, the team’s four senior members play an active role in both investment activities related to the fund as well as management of real estate assets post-investment. The team’s investment track record reflects favorable risk-adjusted returns over approximately 17 years, investing approximately $2.2 billion of capital for six distinct funds.

BayNorth Capital LLC, previously known as the Real Estate Group of Charlesbank Capital Partners, was formed July 1, 2004 by the real estate principals of Charlesbank. Charlesbank was formerly part of Harvard Management Company. Based in Boston, BayNorth manages $1.2 billion in real estate equity and is committed to acquiring, financing and managing high yielding real estate opportunities.

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