Barry Sternlicht
Cameron Costa | CNBC
Barry Sternlicht told CNBC on Thursday that he is concerned about the flurry of special-purpose acquisition companies hitting the market, warning that the quality of some deals could be bad for investors.
Sternlicht, president and CEO of the Starwood Capital Group, was himself involved in the start of six SPACs. He said: “Three that have been completed and three that have been archived.”
In an interview on the “Squawk Box”, Sternlicht said that not all SPACs are created equal.
“We returned 20% compounded for 30 years in the Starwood Capital Group in the real estate market and we know how to structure businesses. We know how to evaluate businesses,” said the billionaire investor.
“There are a lot of newbies out there, but watch out,” he said, without mentioning any specific names. “I hope the public is not being led to the massacre.”