Draycott acquires Portuguese asset manager ECS from Davidson Kempner
What's the deal? US firm Davidson KempnerDealroom has a profile for this one. Try Dealroom → has agreed to sell asset manager ECS to DraycottDealroom has a profile for this one. Try Dealroom →, the firm founded by João Coelho Borges. The deal value was not disclosed, and it awaits regulatory approval.
The backstory: Davidson Kempner acquired ECS CapitalDealroom has a profile for this one. Try Dealroom → in December 2022 for €850 million. That purchase, known as "Projeto Crown," included 21 hotels — among them the Conrad Algarve, Cascatas Golf Resort & Spa, the NAU Hotels & Resorts chain, and the HiltonDealroom has a profile for this one. Try Dealroom → brand — plus five golf courses, logistics platforms, and a shopping centre.
Why now? The assets had been held by a group of Portuguese banks since the financial crisis before Davidson Kempner stepped in. The US firm will stay on as a strategic partner to Draycott on the portfolio.
What could go wrong? According to Bloomberg, the transaction has been notified to the Portuguese Competition Authority and will only close once its approvals are validated. The Securities Market Commission (CMVM) must also issue a non-opposition decision.
What's the endgame? Draycott is building a diversified holding. It took a majority stake in Square Asset ManagementDealroom has a profile for this one. Try Dealroom → in May, after entering the capital of Science4youDealroom has a profile for this one. Try Dealroom → and buying gardening firms Sograma and Jardim Vista.
The signal: Tourism is familiar territory for Draycott, which owns Sublime Hotels with units in Comporta and Lisbon. The deal hands a locally founded manager a sizeable Portuguese hospitality portfolio that global capital assembled from post-crisis distressed assets.
Read more: jornaldenegocios.pt
Image credit: Generated with Gemini
