Expands European Credit Business
NEW YORK, LONDON & DUBLIN--(BUSINESS WIRE)--
KKR & Co. L.P. (NYSE:KKR), a leading global investment firm, today
announced a transaction to acquire Avoca Capital, a leading European
credit investment manager with approximately $8 billion in assets under
management. Financial terms of the transaction were not disclosed.
Founded in 2002, Avoca has a long track record as one of the leading
investment firms in the European leveraged credit markets. Avoca invests
across five strategies — European loans and bonds, credit opportunities,
long/short credit, convertible bonds and structured and illiquid credit.
The Avoca platform has experienced strong inflows in recent years as
institutional investors seek access to credit asset classes with a focus
on attractive returns and downside protection.
Henry Kravis and George Roberts, co-founders and co-CEOs of KKR, stated:
"We believe the European credit space offers significant opportunity. To
date we have built our European credit business focused on originated
credit opportunities such as private credit and special situations,
providing $2 billion of capital in just the last two years to European
companies. Avoca has a very strong track record, an entrepreneurial
management team and excellent capabilities that are complementary to
ours in European senior and liquid credit. This acquisition will enable
us to expand our credit platform to offer a full spectrum of credit
opportunities globally for our clients."
Alan Burke and Dónal Daly, co-founders of Avoca, stated: "European
credit markets are likely to grow significantly over the decade ahead as
banks deleverage and take time to rebuild their capital bases. This
transaction creates a broad based credit business that will be at the
forefront of the developments in European credit markets in the years to
come. We are very excited by the enhanced opportunities the transaction
will bring for the Avoca team and its clients."
As European banks have shifted assets to comply with Basel III
regulations on capital and leverage, alternative capital providers that
are able to make longer term investments are providing financing to
European companies while providing institutional investors with the
returns they need to pay their pension and insurance obligations.
Upon closing the transaction, KKR will have approximately $28 billion in
credit assets in its multi-strategy credit platform operating globally
in San Francisco, New York, Dublin, London and Sydney. The combined
European credit business will have approximately 80 people on the ground
and €8bn ($11bn) of European credit assets ranging across the entire
capital structure in credit from senior loans to long short credit,
structured credit, mezzanine, special situations and convertible bonds.
Alan Burke, Avoca co-founder and CEO, will lead KKR's European credit
platform and together with Nat Zilkha will help drive the future growth
of KKR's global credit business. Both Alan and Nat will report to Craig
Farr, who has responsibility for KKR's global credit and capital markets
businesses. Dónal Daly, co-founder and Chairman of Avoca, will become a
Senior Advisor to KKR at transaction close.
All Avoca employees in Dublin and London will join KKR on transaction
close. Investment teams and processes for both KKR and Avoca, including
the portfolio management of the respective firms' strategies, will
remain unchanged by the transaction. Avoca's Dublin office will remain a
core part of the combined franchise. The transaction, which is subject
to customary regulatory approvals, is expected to close in the first
quarter of 2014.
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $83.5 billion
in assets under management as of June 30, 2013. With offices around the
world, KKR manages assets through a variety of investment funds and
accounts covering multiple asset classes. KKR seeks to create value by
bringing operational expertise to its portfolio companies and through
active oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with fund investors
through its client relationships and capital markets platform. KKR & Co
L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate.
About Avoca Capital
Avoca Capital is a leading European credit investment manager with
€6bn/$8bn of assets under management. The partner owned firm was founded
in 2002, is based in Dublin and London and employs 67 professionals.
Avoca has a long track record of being one of the top performing
investment firms in the European sub-investment grade credit markets.
Avoca's clients include global pension funds, sovereign wealth funds,
insurance companies, asset managers and private banks. Avoca Capital
Holdings is regulated by the Central Bank of Ireland and subject to
limited regulation by the Financial Conduct Authority.
Craig Larson, +1-877-610-4910
(US), +1-212-230-9410 (international)
KKR New York
- RLM Finsbury
Edward Simpkins, +44 20-7251-3801
Turner, +44 20-7251-3801
Kevin McMahon, +353 1-479-3116
Temple Bar Advisory
Alex Child-Villiers, +44
Barker, +44 20-7002-1080,
News Provided by Acquire Media