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RBS veteran hired to run innovative unit; Greece in frame after first deal in Italy.
Private equity firm KKR plans to build a pan-European operation out of its new restructuring platform, Pillarstone, and has hired John Davison as London-based chief executive and co-investor.
Europe needs solutions offered by companies like Pillarstone for the sake of its banks and its economy John Davison, KKR
Davison, previously global head of strategic investments at RBS, says Pillarstone is eminently suited to the banking environment in Europe, and that similar initiatives are likely to emerge.
His appointment comes after KKR's credit arm agreed a restructuring deal with Italy's two biggest banks in June. Intesa Sanpaolo and UniCredit are transferring six credit and equity positions totalling EUR 1 billion to the platform.
US restructuring consultancy Alvarez & Marsal is involved as a preferred service provider to the scheme.
The idea is to create a specialist vehicle that can also provide the portfolio companies with new capital. But rather than being a straight buyout, with the sellers realising the losses up front, the banks will benefit from the upside.
"These are situations in which we want to stay with the client, where we think the company can recover and we are not ready to sell the loan at a discount," says Giovanni Gilli, head of Intesa's...