Global investment firm Sixth Street is making a bet on affordable housing in primary U.S. markets.

L+M Development Partners, a New York-based builder active in 14 states, announced a new partnership with Sixth Street that will create a new corporate structure at the firm and allow it to expand to new markets.

A spokesperson for L+M declined to quantify the size of the investment, and a Sixth Street spokesperson didn’t respond to an email Wednesday morning. Sixth Street has roughly $100B in assets under management and committed capital in both equity and debt investments around the globe.

L+M Cos., a new holding company, was created as part of the partnership. It consists of L+M Development Partners, L+M Fund Management and LMXD, the firm's mixed-use and mixed-income development platform.

The senior leadership team across L+M’s business lines will remain in place as part of the partnership.

Across its 40-year history, the newly named L+M Cos. has undertaken $20B in development, acquisition and preservation of roughly 573,000 affordable housing units. The investment from Sixth Street will allow L+M to expand investments in New York, Texas and California while pushing into new markets, according to a release.

Sixth Street, founded and led by Alan Waxman, invests across a variety of sectors, including renewable energy, life sciences, software, financial services firms, real estate, sports and telecommunications.

It has recently used deals with insurance companies to increase its exposure to commercial real estate while hedging against risk. It entered an agreement in January with Northwestern Mutual to manage $13B worth of the insurer’s assets. The agreement targets asset-based finance and opportunistic real estate investments.

Sixth Street partnered with Blackstone Europe in March for a failed takeover bid of UK-based Warehouse REIT that would have valued the company at more than $600M. In June, Sixth Street closed on a separate 3.3M SF industrial portfolio acquisition in the UK in a partnership with Copley Point Capital.

Sixth Street is involved in smaller-scale projects as well. IRG Sports, a Sixth Street subsidiary, purchased a race track in Palm Beach County, Florida, in 2015 and operated the raceway for more than five years before shutting it down, citing a lack of profitability.

After years of battles with racing fans and local residents, the Sixth Street subsidiary won approval to redevelop the track into warehouses in May 2023.