WeWork’s continuing turnaround will go on without the guidance of chairman and CEO Sandeep Mathrani, who is resigning the co-working space provider, effective May 26, to direct private equity firm Sycamore Partners’ real estate strategy.

The former Brookfield Properties retail boss has led WeWork since February 2020, when he was brought on to help guide the company to profitability.

The company named board member David Tolley as interim CEO, while another board member, Daniel Hurwitz, will become chairman. Tolley takes over a restructuring process that saw WeWork reach a deal to convert roughly $1 billion of major investor SoftBank Group Corp’s unsecured notes into equity.

Mathrani oversaw $2.3 billion in cost cuts and a streamlining of global operations at the company founded by Adam Neumann in 2010. The profit failed to materialize, but WeWork reported consolidated revenue of $849 million, up 11% year-on-year, in the first quarter of 2023 as net loss narrowed by $205 million from a year earlier to reach $299 million.

“We are thrilled to have Sandeep join the Sycamore Partners team as the firm has a long history of underwriting real estate while evaluating portfolio company opportunities. Given the current environment, we believe real estate will continue to be a significant source of value,” said Stefan Kaluzny, Managing Director of Sycamore Partners.

Retail, consumer and distribution-focused Sycamore Partners has currently raised about $10 billion since it was founded in 2011. The firm, which raised $4.75 billion for its third fund in 2018, is expected to head back into the market for its fourth fund this year.