Private Equity Loading Up European Real Estate Businesses For A Profit
<p>Between 2012 and 2015, private equity firms snapped up dozens of real estate businesses in the U.K. and Europe that were being sold by banks or distressed owners.</p>
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J.P. Morgan Asset Management Raises $480M For Second Maritime Fund
J.P. Morgan Asset Management has closed its second maritime fund at $480 million. The limited partners of Global Maritime Investment Fund II include pension plans, insurance companies, endowments and healthcare organizations. The pool will invest in vessels in distressed shipping sectors. So far, the fund has deployed $312 million of its capital via the acquisition of 14 assets.
Russekoff's Smith Cove Capital Hires Ex-Perry Distressed Specialist Gulati
David Russekoff’s new hedge fund Smith Cove Capital has brought former Perry Capital executive Chetan Gulati aboard as the firm begins to build out a London-based investment team. The two hedge fund veterans worked together at Perry Capital, according to a Reuters article. Russekoff was Perry Capital’s chief investment officer until 2015, while Gulati was a distressed securities specialist and ran Perry’s London office until it closed last year. Perry Capital closed in September after its founder, Richard Perry, concluded “the industry and market headwinds against us have been strong, and the timing for success in our positions too unpredictable.”...
India’s Bad Debt Is Looking Better To Investors
Indian banks held about $105 billion in gross nonperforming loans as of Sept. 30, according to the Reserve Bank of India. These vultures are investors looking for opportunities in distressed assets and bad debts. For years they had avoided investing in India, put off by a creakingly slow legal system and a labyrinthine bureaucracy.
Puerto Rico Faces Hedge Fund Lawsuits As U.S. Reprieve Ends
Puerto Rico is facing a fresh round of creditor lawsuits after a temporary reprieve on litigation was lifted, exposing the distressed Caribbean island to the consequences of the defaults on much of its $70 billion of debt. Hedge funds holding $1.4 billion of general-obligation bonds sold in 2014, including Aurelius Capital Management and Monarch Alternative Capital, sued the commonwealth in New York state court in Manhattan, seeking payment on overdue principal and interest. Insurer Ambac Financial Group Inc. and funds that own sales-tax backed bonds sued in the U.S. District Court of San Juan in an effort to block the...
Meet Paul Singer: The Billionaire Activist Investor Taking On BHP Billiton
Wall Street hedge fund manager has form when chasing high returns from distressed debt to corporate takeovers.
Recent Developments In Acquisition Finance
When a portfolio company underperforms, an equity sponsor will want to assess the degree of negotiating leverage the company’s lenders have against the company under the circumstances, which can play a significant role in defining the terms of waivers or amendments or of an eventual workout to be sought with the lenders. Strategic options available to a sponsor will depend, among other things, on the degree of leverage, or perceived leverage, held by lenders. Two recent court decisions may impact this balance and the relative strength of lenders versus their distressed borrowers.
Top Hedge Funder Says Retail Slump Is A "Forever Trend”
Hedge fund manager Jason Mudrick has dire predictions for the country’s retail sector, and he’s betting big on reaping the rewards. Mudrick, whose Mudrick Capital Management focuses on distressed investments, told Bloomberg that retailers’ problems are here to stay. “This is a forever trend,” Mudrick said on Bloomberg TV. “When you think about how things are going to look 10 years from now, or 20 years from now, our parents will be dead, our kids […]
Private Equity Is Raising Its Bets To Save Distressed Positions
<p>In a casino, doubling down can be dangerous. But in private equity, it’s increasingly becoming the best way to eke out a profit on a bet turned bad.</p>
<p>From Apollo Global Management LP to Bain Capital to Thomas H. Lee Partners, investors have bought hundreds of millions of dollars of debt in struggling businesses they took private, giving them positions as both stockholders and creditors.</p>
Värde Partners Raises $1.74B For 12th Fund
<p>Global alternative investment manager Värde Partners has raised $1.74 in committed capital for its twelfth buyout fund. The new fund, named Värde Fund XII closed with $1.74 billion of committed capital, the company said in a statement. As with Värde’s previous funds, the new vehicle will invest in opportunities across a broad array of geographies, segments and asset types with a focus on value-based and credit-oriented investments in investment themes related to bank retrenchment, new distressed cycles and market distress still remaining from the great financial crisis.</p>