Waldeck Capital has announced the launch of a EUR 500 mln fund to acquire luxury hotels in Europe and the US. The investment banking firm, incorporated in the US state of Delaware, said it is seeking investment from both institutions and individuals for the Global Hospitality Recovery Fund.
Waldeck Capital has announced the launch of a EUR 500 mln fund to acquire luxury hotels in Europe and the US. The investment banking firm, incorporated in the US state of Delaware, said it is seeking investment from both institutions and individuals for the Global Hospitality Recovery Fund.
To minimise risk, the fund will raise capital in a number of currencies and will create a balanced portfolio of assets in currencies, markets and countries.
Waldeck Capital said it will focus entirely on the premium end of the luxury market, purchasing non-performing assets with negative cash flow, delinquent assets being disposed of by institutional investors, distressed assets in negative equity and assets that are in breach of loan covenants.
The banking group is focusing its search for acquisitions across Europe, where it hopes to make the most of asset stripping and leveraged deal flows, and the US, where it is aiming to pick up banking sector disposals. It hopes to make its first acquisition in either the fourth quarter of 2009 or the first quarter of 2010.
Tom Smit, CEO of Waldeck Capital, said, 'The Global Hospitality Recovery Fund is a natural development of our core business, which is luxury hotel development. The team I am assembling to head up this fund has unparalleled expertise in the field and I am confident of making our first investment before the end of the year'.
