KKR To Acquire Avoca Capital, European Credit Firm

KKR To Acquire Avoca Capital, European Credit Firm
By Kohlberg Kravis Roberts (http://www.kkr.com/KKR_Logo.svg) [Public domain], via Wikimedia Commons

A leading global investment firm, KKR & Co. L.P. (NYSE:KKR) is planning to buy Avoca Capital, which is a European debt investment firm overseeing $8 billion in assets, according to a KKR statement on Friday. The acquisition will help KKR to explore more potential opportunities in Europe.

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KKR To Acquire Avoca Capital, European Credit Firm

Financials of the deal have not been made public.

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Deal to help KKR expansion plans in Europe

The deal will help KKR & Co. L.P. (NYSE:KKR) increase its credit investment business to around $28 billion and its capacity to invest in European bonds, loans and structured products. KKR is expecting that in a stricter scenario coupled with tough Basel III capital requirements, it will get help from alternative lenders to provide financing to the companies.

KKR is expanding its footprint in the continent and has already provided $2 billion in debt financing to European companies in the past two years.

In a statement, KKR & Co. L.P. (NYSE:KKR)’s co-founders, Henry R. Kravis and George R. Roberts said, “We believe the European credit space offers significant opportunity.” They said that Avoca has a very strong track record, an entrepreneurial management team and excellent capabilities

Co-founders Alan Burke and Donal Daly of Avoca said that credit markets in Europe will most probably grow at a good pace in the coming decade as banks deleverage and take time to rebuild their capital bases.

Avoca Capital is an 11-year-old firm based in Dublin and London with 67 employees. Alan Burke, CO-founder and chief of Avoca, will oversee KKR & Co. L.P. (NYSE:KKR)’s European credit segment and will report to Craig Farr, head of American firm’s global credit and capital market businesses.

Earlier, Wilbur Ross planned to buy assets in Spain

Another famous billionaire investor based in the United States, Wilbur Ross, who pocketed 65 percent profit on his 2011 investment in a low performing Bank of Ireland (ADR) (NYSE:IRE), a few months back revealed plans to put his money on banks and financial assets in Spain.

Ross’s company WL Ross & co, which has a 9.9 percent stake in BOI, told Reuters that he has been in Spain for a long and the banking sector there has caught his eye.

“We haven’t decided yet whether to buy assets or to invest in banks themselves, but the likelihood is that we’ll show up bidding on something in Spain,” he said. Ross has earned profit of around $2.6 billion through investing in poorly performing assets and is one among those who have enjoyed profit from Ireland’s recovery.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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