Starwood Capital Group, the Greenwich-based investment firm, has just completed the fund-raising initiative for two of its key realty funds, hitting a total of $2.8 billion, Bloomberg reports.

Starwood Global Opportunity Fund VIII received over $1.8 billion in funding, an insider told the news service, while the Hospitality Fund II, garnered around $1 billion. The former targets distressed debt and property, while the latter works with hotel investments.

The endeavor was supported by JPMorgan Chase & Co, which also helped raise around $10 billion for 11 of Starwood's other funds previously, the publication said. The realty fund's predecessor, Starwood Global Opportunity Fund VII, reportedly grew 3 per cent in January, thus paving the way for the creation of another.

The company is presently in talks with troubled Las Vegas casino operator
Riviera Holdings Corp, in a deal that could price the 26-acre resort at $5,000 per room.