Gaw Capital Shifts Strategy With Exit From US and Europe

Gaw Capital exits US and Europe to focus on Asia, ending 15 years of Western investments amid market and political headwinds.

October 31, 2025

Jordan B.

Gaw Capital is exiting the US and Europe to concentrate on Asia, where most of its $35.8B in AUM is located.
The firm invested $2.5B in Western real estate but now plans to offload assets and cut staff in those regions.
The decision follows geopolitical headwinds, pandemic disruptions, and poor asset performance, including a high-profile Hollywood deal.

Key Takeaways

Refocusing on Familiar Ground

Bisnow reports that Gaw Capital Partners, a Hong Kong-based real estate private equity firm, is pulling back from the West. The company is shifting its strategy to focus on Asia, where it has long seen stronger results.

“Asia has always been our biggest strength,” a Gaw spokesperson said in a statement. Most of its $35.8B in assets under management are already concentrated in nearby markets.

A Gradual Exit

The firm plans to exit its Western holdings while maximizing returns. It also began downsizing its US and UK teams earlier this year. Staff in Los Angeles, San Francisco, Seattle, and London were notified over the summer.

This pivot ends a 15-year run of Western expansion. Gaw entered the US market after the 2008 financial crisis and raised $850M across three investment vehicles between 2011 and 2018.

In Europe, it invested $1.6B—mostly in UK offices and Portuguese hotels.

A Costly Bet on Hollywood

Gaw’s shift follows several challenges in the West. One of its most visible setbacks came from a partnership with DJM Capital to buy Ovation Hollywood (formerly Hollywood & Highland).

The deal turned sour. In June 2024, the $211M CMBS loan on the property entered special servicing. A March 2025 appraisal valued the site at $257M—down 24% from its 2019 figure of $338M.

Why It Matters

Gaw’s exit reflects broader global investment caution. Political uncertainty in the US, rising tensions with China, and pandemic-related losses have made Western markets less attractive.

When Hong Kong protests erupted in 2019, many investors scaled back foreign spending. Gaw initially moved against the trend—but that strategy no longer appears viable.

The Bigger Picture

With this move, Gaw joins a growing number of firms rethinking global expansion. Its return to Asia signals confidence in its home region, despite recent volatility.

For now, investors may see this as a sign to prioritize local markets over distant, uncertain ones.

Gaw’s decision could mark the start of a broader pullback from Western real estate by Asia-based firms.