Latest news with #DavidsonKempner
Mint
3 days ago
- Business
- Mint
Andy Mukherjee: Foreign money has rushed in where local lenders fear to tread
India is a sizzling market for private credit, though some participants are wondering if in their eagerness to close deals, investors are shutting their eyes to risks, especially the legal minefields around collateral and bankruptcy. A decade ago, India's banks were struggling with the world's biggest load of soured corporate loans. At about $200 billion, the write-offs on that exposure have been large. Deposit-taking institutions that tried to recover the debt via insolvency proceedings have had to accept harsh haircuts. Traditional lenders are so scared by that experience that personal credit, which was less than half of banks' advances to industry 10 years ago, is now 1.5 times as large and growing nearly twice as fast. Credit demand and supply have changed in other ways, too. Large firms, traditionally the heaviest users of bank financing, seem the least interested in project finance. They are borrowing selectively to fund acquisitions and refinance existing debt rather than to create new capacity. Also Read: Finance in India has a new bogey called private credit Startups and their founders are far more eager to raise debt, though that's mostly because venture capital funds have become stingy. Initial public offerings are being delayed in a slowing economy, and equity valuations for many unlisted firms are cooling off. Non-bank financiers, too, are starved for funding. Banks have turned cautious about these firms' exposure to overleveraged households. This is a perfect scenario for non-traditional lenders—global insurers, asset managers and sovereign wealth funds—to fill in the void left by banks and pocket a cool 18-20% return. Värde Partners, Oaktree Capital Management and Davidson Kempner are among the most aggressive, though everyone from BlackRock to Allianz Global Investors is participating enthusiastically in the deal-making. Local players appear quite miffed. Even though they're in on many small loans, the foreign money deluge is cutting them out of marquee transactions. Domestic private-credit ventures, especially those affiliated with banks, are also keen to earn high rates of return on capital. But they're more interested in the return of capital. Some of them have struggled to raise funds because they aren't seen as bold enough. Also Read: Much more private credit will be needed to feed India's rapid economic expansion Their foreign rivals, meanwhile, lack neither capital nor courage. As a few prominent Mumbai financiers told me, overseas institutions may be mispricing the true credit risk, which won't end well. Greed may hurt foreign investors, who will then cry that it's hard to get repaid in India. Some already are. In 2021, US lenders gave $1.2 billion to Indian entrepreneur Byju Raveendran for his eponymous online education venture, then the country's most valuable startup. Now Byju's has collapsed and the money is largely gone. Creditors will be lucky to get even a few cents on the dollar from bankruptcy proceedings in India. And yet, Byju's is no longer a cautionary tale in a gung-ho market. Creditors are chasing special situations, such as a nephew who needs a hefty loan to buy out an uncle. The other opportunity is in restructuring. Last month, Shapoorji Pallonji Group, a real estate and construction conglomerate, raised $3.4 billion from Deutsche Bank and other investors to refinance previous high-cost debt. This deal, a new record for India's private-credit market, has raised eyebrows. Although repayment is due in three years, the yield on the zero-coupon bond is as high as 19.75%. The collateral is also tricky. The deal is reportedly backed by about $3.6 billion of real estate and investments in oil and gas. The crown jewel is a 9.2% stake in Tata Sons, valued at roughly $18.6 billion. Also Read: Shapoorji Pallonji Real Estate rejigs top deck, appoints dual CEOs But how will value from the holding company of Tata Group, whose listed units are worth $325 billion, ever be realized? Shares in privately held Tata Sons aren't freely transferable. That's the official position of the charitable trusts that are its majority shareholders. Maybe investors are betting that the trusts will eventually relent or that they will buy out Shapoorji, the largest minority shareholder. Neither outcome can be predicted with any degree of bold bet shines a light on the buccaneering spirit that has taken over India's nascent private-credit industry. Policymakers would want to see more risk-taking in creation of new assets. India's new central bank chief has slashed interest rates, reducing the repo rate by a more-than-expected half percentage point on Friday. He has also flooded the financial system with liquidity. But given the cloudy outlook for global trade and local consumption, corporate investment isn't India Inc's priority. Swapping assets among one another is. As for the money, there are enough private lenders willing to write checks of $100 million or more. And if they don't, someone else will. ©Bloomberg The author is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia.
Hospitality Net
14-05-2025
- Business
- Hospitality Net
Portugal Hotels & Chains Report 2025
Welcome to the 2025 Portugal Hotels and Chains Report, a comprehensive exploration of the dynamic hospitality industry in Portugal. This report delves into the unique opportunities and challenges facing this flourishing market, offering valuable insights. Portugal's hospitality industry continues to stand out as one of Europe's most dynamic and resilient markets. In 2024, the country reinforced its position as a top-tier global tourism destination, buoyed by sustained demand, growing international interest, and a robust investment environment. While traditional destinations like Lisbon, Porto, and the Algarve remained strongholds of growth, there was a notable surge in visitor numbers to lesser-known regions, signalling a broader diversification of tourism flows. The sector's evolution has been marked by a shift toward more sustainable, experiential, and culturally immersive travel. This has driven both strategic investments and operational innovation, particularly in the midscale segment, which is experiencing a rapid rise in popularity among younger, budget-conscious travellers. Meanwhile, institutional investors continue to demonstrate high confidence in the Portuguese market, despite macroeconomic challenges, with new developments and brand entries expanding across the country. This report provides a detailed snapshot of current performance, development pipelines, and market trends shaping Portugal's hotel landscape. From the increasing dominance of international hotel chains to the strong RevPAR growth across emerging destinations, the 2025 edition offers a timely, data-driven perspective on the forces driving this high-performing European hospitality market. Market Dynamics Strong Growth : In 2024, Portugal reinforced its position as a leading global tourism destination, with a 5% rise in guests and a 4% increase in overnight stays, mostly driven by international travellers (over 70%). : In 2024, Portugal reinforced its position as a leading global tourism destination, with a 5% rise in guests and a 4% increase in overnight stays, mostly driven by international travellers (over 70%). Revenue Performance : Hotel revenues rose by 12%, with RevPAR up 8% to €65.4 and occupancy at 62.3%. : Hotel revenues rose by 12%, with RevPAR up 8% to €65.4 and occupancy at 62.3%. Urban Focus with Rural Expansion: While Lisbon and Porto remain dominant (Lisbon RevPAR at €112.6; Porto overnight stays up 9%), lesser-known areas like Oeste, Vale do Tejo, and the Azores also saw 8–10% growth in overnight stays. Key Highlights Shift Toward International Brands International brands are growing as domestic brands shrink. Davidson Kempner acquired 21 distressed hotels and handed operations to Highgate. Rebranding of NAU Hotels & Resorts properties under Marriott (e.g., Marriott Residences Salgados Resort). Hilton plans to add 2,000+ rooms; Marriott is developing a €52.5M luxury resort at Verdelago. Development Pipeline Led by Lisbon Lisbon City has the most projects: 34 hotels / 5,167 rooms in the pipeline. Opening Targets for 2025: 24 new hotels across Lisbon, North, Algarve, and Alentejo. Challenges: Licensing delays, financing, and technical issues are affecting delivery timelines. Midscale Segment Booming 16 new chain midscale hotelsadded in 2024, surpassing other segments in growth. Trend driven by younger, budget-conscious travelers seeking experiential stays. Institutional Investment Remains Strong Davidson Kempner: Largest institutional owner with 21 hotels, €773M investment. Other major investors: Arrow Global (8 hotels), Azora, Square Asset, and Extendam. Download the full report About Horwath HTL Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry. For more information, please visit View source
Time of India
22-04-2025
- Business
- Time of India
Edelweiss ARC exits Adhunik as Davidson Kempner takes control
Mumbai: Edelweiss Asset Reconstruction Company will make a full exit from Adhunik Power & Natural Resources (APNRL), recovering about ₹1,250 crore, after global alternative asset manager Davidson Kempner issued a ₹1,400 crore loan to the power producer and its promoter-linked entities. The funds, structured as 10-year non-convertible debentures (NCDs) with a 16.89% coupon, will be used to refinance Edelweiss's outstanding debt and to acquire its equity and optionally convertible debentures (OCDs) in Adhunik, giving the ARC a clean exit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do You Speak English? Work for a USA Company, Live in Khula Sadar US Jobs Online | Search Ads Undo Of the total, ₹1,250 crore was lent directly to Adhunik Power, with the remaining routed through group companies. The fresh refinancing will help Adhunik lower its restructured debt of ₹2,800 crore while also reducing the cost of borrowing. A spokesperson for Davidson Kempner declined to comment while Edelweiss did not comment. Live Events Edelweiss, which had acquired Adhunik via the insolvency resolution route, had been gradually monetising its exposure through asset sales and repayments. The latest deal marks the end of Edelweiss's involvement, transferring control to Davidson Kempner-backed entities. In 2017, Edelweiss ARC took on debt from State Bank of India for ₹3,200 crore under a 15:85 cash-to-security receipts structure, wherein 15% was paid in cash and 85% in security receipts (SRs). Adhunik has since improved its financial position, recently recovering ₹780 crore from discoms, improving its liability reduction and operational stability. Davidson Kempner's fund helped Adhunik cut borrowing costs by 4-5% compared to prior obligations. The refinancing deal also tracks a recovery in valuations of Adhunik's 540 MW coal-based thermal plant in Jharkhand from ₹2 crore/MW to ₹3-3.5 crore/MW, supporting a viable debt load of around ₹1,600 crore. Adhunik Power has also boosted its liquidity after recovering ₹780 crore from discoms.
Yahoo
19-04-2025
- Business
- Yahoo
Vacasa says Davidson Kempner proposal does not constitute ‘superior proposal'
Vacasa (VCSA) announced that the Special Committee of its Board of Directors has unanimously determined that the revised unsolicited acquisition proposal from Davidson Kempner Capital Management LP does not constitute, and is not reasonably likely to result in, a 'superior proposal' pursuant to the terms of the definitive merger agreement between Casago and Vacasa. 'In making its determination, the Special Committee considered a number of factors, including: that the Proposal remains conditioned upon requiring an amendment to the company's Tax Receivable Agreement, for which Davidson Kempner has been unable to obtain the requisite approvals from TRA beneficiaries, or to provide any clear path towards obtaining such approvals; Davidson Kempner's continued rejection of many of the company's material requests regarding closing conditions and terms to improve transaction certainty; and concerns regarding Davidson Kempner's position as a creditor of the company, providing asymmetric downside risk to public stockholders in the event a transaction with Davidson Kempner failed to close. Ultimately, in light of the above, the Special Committee determined that the Proposal was not reasonably likely to be consummated in accordance with its terms, so long as the Proposal remained conditioned upon receipt of an amendment to the TRA and subject to materially greater risks regarding closing certainty than the Casago transaction. The Special Committee takes its fiduciary duties to act in the best interests of public stockholders extremely seriously and strongly disagrees with the various assertions made by Davidson Kempner in its most recent proposal letters. Notwithstanding Davidson Kempner's proposed purchase price of $5.83 per share, the Special Committee cannot support a transaction that is not actionable and has significantly less certainty of closing than the transaction with Casago, especially in light of recent market volatility and uncertainty,' the company stated. On March 17, Vacasa entered into an amendment to the Merger Agreement pursuant to which Casago will acquire all outstanding shares of the Company held by public shareholders at a price of $5.30 per share. Under the amendment, Casago also agreed to remove both purchase price adjustment provisions, which could have resulted in a reduction of the merger consideration due to shortfalls in the Company's liquidity or units under management compared to specified thresholds. The Special Committee and the Board each reaffirm their support for the Merger Agreement with Casago, as so amended, and the Board reaffirms its recommendation that Vacasa shareholders vote in favor of the transaction with Casago. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on VCSA: Disclaimer & DisclosureReport an Issue Vacasa Receives Acquisition Proposal from Davidson Kempner Vacasa Announces All-Cash Offer with Casago Vacasa Proposes Beneficial Transaction with Casago Holdings Vacasa accepts revised acquisition proposal from Casago at $5.30 per share Universal Technical names Bruce Schuman as CFO, effective immediately Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
Start Campus plans to invest $9.35 billion in Portugal data hub
By Sergio Goncalves SINES, Portugal (Reuters) - U.S. investment fund Davidson Kempner and Britain's Pioneer Point Partners plan to invest 8.5 billion euros ($9.35 billion) by 2030 in a data centre hub in Portugal to serve a growing demand from major tech and artificial intelligence companies. They said on Friday their joint project, Start Campus, in the city of Sines, 150 km (93 miles) south of Lisbon, already has one of the planned six buildings in operation. Investments in data centres, which help provide computing power for AI, have surged since OpenAI launched ChatGPT in 2022, as companies across sectors increasingly shift their operations to the cloud and integrate AI into their offerings. Portugal's caretaker Economy Minister Pedro Reis said the project is a "structuring investment for the Portuguese economy, which helps to place Portugal in a strategic position in the data economy, taking advantage of Sines' privileged geographical location". ($1 = 0.9087 euros) Sign in to access your portfolio
