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Rivercrown launches a Special Situations Credit Vehicle

London, 16th June 2020 - Rivercrown, the pan-European principal investment and capital markets advisory firm based in London has announced the launch of a new Special Situations Credit Vehicle.

The Vehicle will target attractive risk-adjusted returns, whilst supporting Sponsors during the current period of market uncertainty. The Vehicle will use a variety of structures across the capital stack, ranging from stretched-senior to preferred equity. With the current climate presenting unique challenges for borrowers, the strategy will be to find areas where there are funding gaps or short-to-medium-term dislocations in pricing.

Rivercrown says the Vehicle will look at sectors that are currently out of favour including value-add retail and leisure, particularly with re-purposing opportunities, and serviced offices in strong locations. It will also be open to hotel developers or investors requiring breathing space or a bridge to market stabilisation; student accommodation and residential investors requiring inventory bridging loans, and other markets with pandemic-related issues; or opportunities, including speculative logistics development.


In addition, Rivercrown is actively pursuing loan portfolio purchases where banks and alternative lenders are looking to exit positions. This can either take the form of performing, sub-performing or non-performing loans; or loans where the lender has seen increases to their reg cap charging or provisioning.


Target geographies include core European markets with a particular focus on the UK, Ireland, Spain, the Netherlands, Germany and Portugal, where Rivercrown has local market knowledge. Duration will range from short-term bridges to 5-year term loans.

Rivercrown has initially seeded the Vehicle with its own capital, alongside that of one other partner. It is currently engaged in a number of discussions with other, similar investors to scale those initial commitments to a level that will allow for deployment of €250m to €500m over the next 12 months.


Co-founder Stephen Benson comments,

“With a track record dating back to 2004, built on asset and loan servicing re-structuring and special servicing experience during the last financial crisis, we have been here before. Our experience combined with our on-the-ground teams across Europe, means that alongside our investors we will be excellently placed to support borrowers with the right track records and business plans in these unprecedented times.”


Head of Debt Investment Management within Rivercrown’s Principal Investment Division, Charles Archer comments,

“We are seeing a wealth of opportunities, across all sectors. Often where there is a funding-gap combined with an element of short-term, situational distress. Our current transaction pipeline is in excess of £2 billion, half of which conceptually fits the Vehicle’s mandate. We have already issued a number of term sheets and see speed and certainty of execution as being key differentiating factors.”

Rivercrown’s team comprises 30 experienced finance and real estate professionals covering all functions from loan origination, through underwriting, execution and servicing carried-out in-house.


For all enquiries, please contact:


Jacob Lyons

Managing Director

T +44 (0)20 7629 6634

M +44 (0)78 5033 1793

jacob.lyons@rivercrown.com

52 Conduit Street

London W1S 2YX

United Kingdom



Stephen Benson

Managing Director

T +44 (0)20 7629 6634

M +44 (0)77 3617 2872

stephen.benson@rivercrown.com

52 Conduit Street

London W1S 2YX

United Kingdom



Charles Archer

Director

T +44 (0)20 7629 6634

M +44 (0)79 2007 8060

charles.archer@rivercrown.com

52 Conduit Street

London W1S 2YX

United Kingdom



 CONTACT US

Rivercrown Head Office

52 Conduit Street
London W1S 2YX
United Kingdom

+44 (0)20 7629 6634

Rivercrown Spain Office

Calle Goya 6, 3º izquierda
Madrid 28001
Spain

+34 627 25 54 93

Rivercrown Portugal Office
Av. Fontes Pereira de Melo
14 - 6º - 1050-121 Lisboa
Portugal
+351 213 021 763

 

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Rivercrown Finance Limited is a registered company in England and Wales with registered number 09077487 and registered office at 4th Floor, 52 Conduit Street, London W1S 2YX. Rivercrown Finance Limited is authorised and regulated by the Financial Conduct Authority. Rivercrown Management Limited is an Appointed Representative of Rivercrown Finance Limited.

Directors: Jacob Lyons, Stephen Benson and Gilad Tal.