Kohlberg Kravis Roberts said on Friday that it planned to buy Avoca Capital, a European debt investment firm that oversees $8 billion in assets, in a bet that the Continent would offer attractive new opportunities.
Financial terms of the deal weren’t disclosed.
Through the deal, K.K.R.’s credit investment business will grow to about $28 billion, and will add to its ability to invest in European bonds, loans and structured products. The firm is wagering that new banking rules, including the tougher Basel III capital requirements, will allow alternative lenders to step up and provide financing to companies.
K.K.R. has already been building its operations on the Continent, having provided $2 billion in debt financing to European companies over the last two years.
Now, it will add the 11-year-old Avoca, which is based in Dublin and London and has 67 employees. Its chief executive and co-founder, Alan Burke, will head K.K.R.’s European credit arm and will report to Craig Farr, who oversees American firm’s global credit and capital markets businesses.
“We believe the European credit space offers significant opportunity,†Henry R. Kravis and George R. Roberts, K.K.R.’s co-founders, said in a statement. “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.â€
