Värde Partners Closes $1.74 Billion Fund Above Target

MINNEAPOLIS – Värde Partners, the $12 billion global alternative investment firm, today announced the final close of The Värde Fund XII (“Fund XII”). Fund XII closed with $1.74 billion of committed capital. The firm invests in opportunities across a broad array of geographies, segments and asset types.

Värde believes that Fund XII is well positioned to support value-based and credit-oriented investments in markets around the globe. The Fund’s main areas of focus include opportunities across credit, real estate and specialty finance on a global basis, highlighting investment themes related to bank retrenchment, new distressed cycles and market distress still remaining from the great financial crisis.

“We are extremely pleased that so many of our long-time limited partners continue to invest with Värde,” said George Hicks, Co-Founder, CEO and Co-CIO of Värde Partners. “We are equally happy to welcome so many new investors to Fund XII,” he continued.

“Fund XII continues the strong legacy of Värde’s flagship funds,” said Brad Bauer, President of Värde. “These funds have been the cornerstone of the firm’s investing and we are excited to begin work on Fund XII’s investment mandate,” he continued.

The investors in the funds represent a global pool of private capital sources, including state and corporate pensions, endowments, foundations, and funds of hedge funds in North America, Europe and Asia Pacific.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

This press release does not constitute the offer of advisory services or offer of a security or the solicitation of an investment.

Värde Partners and Lamda Development Reach Agreement On Greek Shopping Center Deal

ATHENS – Värde Partners, the $12 billion global alternative investment firm, today reached agreement, through a wholly-owned subsidiary, with Lamda Development for a minority share of the newly established subsidiary company Lamda Malls S.A. The result of this transaction is that both companies are owners of Golden Hall and Mediterranean Cosmos Shopping Centers. Värde’s investment will result in it owning a 31.7% stake in Lamda Malls.

This move supports Lamda Development’s core strategy to strengthen its position in the real estate sector and is consistent with Värde’s investment thesis in Greece. Golden Hall and Mediterranean Cosmos are among the finest real estate assets in the country and create a strong base from which to grow the Lamda Malls business.

“Golden Hall and Mediterranean Cosmos have thrived throughout the financial crisis – this is a testament to the strength of these assets and also to the industry leading management team led by Odisseas Athanasiou at Lamda Development. We are excited to begin this partnership and look forward to supporting Lamda Malls for future growth.” said Tony Iannazzo, Managing Director at Värde Partners.

Odisseas Athanasiou, CEO of Lamda Development stated, “This is a milestone for our company as it marks new development prospects through a strategic partnership which leads us to a new era of investments and strengthens our innovative vision. Värde Partners, an internationally recognized firm, through this investment, acknowledges the leading role of Lamda Development in the real estate market in Greece.”

John Richards, former CEO of Hammerson, the retail-focused UK REIT, former President of British Property Federation, and long time Värde advisor will represent Värde on the board of Lamda Malls.

The transaction is subject to bank approvals.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About Lamda Development:
Lamda Development S.A., listed on the main market of the Athens Exchange, is a holding company specializing in the development, investment and management of real estate. The company is the leader in the retail real estate sector in Greece with successful diversification in the office and residential sectors. The company’s development portfolio includes: three commercial and leisure centers, The Mall Athens and Golden Hall in Athens and Mediterranean Cosmos in Thessaloniki (total GLA 147,000 square meters), office buildings, innovative residential complexes and Flisvos Marina in Faliro.

In November 2014, LAMDA Development group signed the contract with HRADF for the acquisition of the shares of the “Hellinikon SA”. The investment will transform the plot of the former Hellinikon Airport into the largest privately funded investment ever in Greece. The company has a top reputation as member of the Latsis Group and maintains strategic alliances with international and local players.

Värde Partners Acquires Stake in Guber, Sees Significant Opportunity in Management of Italy’s Non-Performing Loans

BRESCIA, ITALY – Värde Partners, the $12 billion global alternative investment firm, today announced its acquisition of a 33% share of Guber, the independent Italian servicer with over 25 years of experience managing secured and unsecured credits in the Italian market. Working with the founders of the company, Värde intends to support the continued growth of the business at a time of significant non-performing loan volumes in the country. Guber will remain an independent company and continue to work with its diverse portfolio of clients, including many of the key Italian financial institutions as well as buyers of non-performing exposures in the secondary market.

Guber is currently the 3rd largest loan servicer in Italy with approximately €7bn of assets under management, with close to 80% of those assets generated from Italian financial institutions. A vast majority of the assets are concentrated in the North and Centre regions of Italy. The company has approximately 160 employees who deploy a range of propriety systems and technology to maximize recovery for its clients.

“We believe that there will be a continued desire among Italian financial institutions to externalise servicing of non and sub-performing exposures. This represents a tremendous opportunity for a best-in-class operator with a deep history of working with these institutions to resolve problems within their loan books,” said Francisco Milone, Senior Managing Director of Värde. “We believe that Guber is clearly one such operator and we see significant growth potential with them,” he continued.

Luca Malighetti, Managing Director in Värde’s Milan office added, “Increasingly, real estate expertise will be required as Italy works through its well-noted and historic issues around non-performing exposures, many of which are collateralized by real estate. This is an area in which Värde has demonstrated know-how.”

Francesco Guarneri the CEO of Guber said, “Värde has a strong reputation for successfully building businesses focused on servicing and other related activities. We are excited by the growth plans we have developed with them. I believe Guber’s business model is uniquely poised to address the current and developing needs of participants in the Italian non-performing loan markets.”

PWC and Studio Frau acted as advisors for Värde. Gotha Advisory, Studio Renoldi, Studio Legale Baldi & Partners advised Guber.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About Guber:
Guber is one of the most experienced independent loan servicers in Italy, operating in the country since 1991. The Company specialises in the management and collection of NPL portfolios mainly for banks: Deutsche Bank (for which it managed more than €1bn of loans), UniCredit, Intesa San Paolo. It also works for investment funds and corporate clients. The Company has 160 employees and its operations are supported by 13 debt collection agencies and 280 external lawyers.

Värde Partners Acquires Boscolo Hotels: Transaction is one of the Largest Deals in the Italian Hotel Sector Since Global Financial Crisis

MILAN – Värde Partners, the $12 billion global alternative investment firm, today closed on its acquisition of 100% of the equity of Gruppo Boscolo, the Italian luxury hotel group.

The agreement follows Värde’s acquisition of over 90% of the company’s outstanding debt from its original lenders via 9 separate transactions. The original lending group advanced more than €350 million to finance the group’s operations and included more than 20 domestic and foreign financial institutions. Värde began acquiring the debt in the secondary market in mid-2016, following multiple attempted restructurings of the company. Today’s equity acquisition concludes Värde’s takeover of the company. The company was founded in 1978 and has been controlled by the Boscolo family for close to four decades.

Gruppo Boscolo will continue to own and operate 9 luxury hotels located across key cities in Italy (Rome, Florence, Milan and Venice), France (Nice), Hungary (Budapest) and the Czech Republic (Prague). The trophy properties include over 1,300 rooms. As part of the transaction, the Boscolo family will retain Boscolo Tours, a domestic tour operator and Hotel Airone, a 97 room hotel in Chioggia.

“The acquisition we closed today demonstrates the value of patience coupled with creative sourcing strategies and quality execution in complex distressed situations. We spent over six months acquiring the debt from local financial institutions and another three negotiating the acquisition of the equity from the Boscolo family,” said Francisco Milone, Senior Managing Director of Värde.

“The assets we acquired today are unique in terms of both their leading position in key tourist-driven cities and their potential for strong operating performance going forward. We intend to support that performance with additional capital and strong management. Fixing the balance sheet has provided a clear path to growth,” said Luca Malighetti, Managing Director in Värde’s Milan office.

Värde was advised by Ernst and Young, Gianni, Origoni, Grippo, Cappelli & Partners, Orrick, and Ludovici Piccone & Partners.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

Värde’s Co-founder Marcia Page Named University of Minnesota Carlson School’s Entrepreneur of the Year Award

MINNEAPOLIS – Värde Partners is proud to announce that Marcia Page, co-founder and executive chair of the firm, has been honored with the University of Minnesota’s Entrepreneur of the Year Award for 2017. The award will be presented at the U of M Founder’s Day event on May 9, 2017, held at the Carlson School of Management.

Marcia co-founded Värde in 1993, along with George Hicks and Greg McMillan. Now, more than two decades later, Marcia serves as Executive Chair of the firm after previously serving as a Co-CEO and Co-Chief Investment Officer. Today Värde manages over $12 billion of assets, investing on behalf of foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. The firm employs more than 250 employees in 12 offices around the world. Marcia began her career at Cargill after earning her MBA from the Carlson School of Management.

Among other initiatives, Marcia is currently helping to lead a gender diversity initiative in the firm. “Businesses are better served by having varied perspectives around the table,” Marcia was recently quoted. “To the extent that those voices are not included, you come to a lesser decision.” Värde’s unique culture has been one of the cornerstones of the firm’s success to date and was a central focus of the founding partners.

As an active leader in the community, Marcia regularly speaks to students while serving on the Carlson School Board of Overseers and the Board of Trustees at Gustavus Adolphus. She also supports the Mary J. Page Community-University Partnerships Fund to honor her mother’s commitment to rural communities and sustainable development. She is a member of the Committee of 200, an organization of the world’s most successful women entrepreneurs and corporate innovators.

Värde Partners Completes Acquisition of Fairstone, Canada’s Largest Non-Bank Consumer Lender

MINNEAPOLIS – Värde Partners, the $12 billion global alternative investment firm, today announced that it has completed the acquisition of portfolio company, CitiFinancial Canada, Inc., and has rebranded the company under the new name “Fairstone Financial Inc.”

Värde Partners and J.C. Flowers & Co. LLC purchased CitiFinancial Canada in 2016 with the goal of strengthening the company’s brand as a leading provider of affordable borrowing solutions in Canada. CitiFinancial’s, and now Fairstone’s, reputation is built on a solid foundation, with a history of lending in Canada dating back nearly 100 years and more than 200 branches in each province and two territories.

“We’re thrilled to launch our new Fairstone brand and to continue to grow and evolve our business,” said Scott Wood, President and CEO of Fairstone. “As a community-based lender, Fairstone wants the best for our customers, and that means working closely with them to find the loan solution that’s right for their needs.”

Under the new name, Fairstone will continue to provide personal loans and home equity loans to Canadians and partner with leading Canadian retailers to offer consumer financing programs. Fairstone’s 1,400 employees provide a personal touch with a grounding in local communities across Canada and will remain central to Fairstone’s high quality customer experience.

“Through Fairstone we see tremendous opportunity to continue expanding the availability of affordable financing solutions to communities across Canada,” said Aneek Mamik, Senior Managing Director and Head of North American Specialty Finance, Värde Partners. “We are excited to add such a strong and innovative business to our specialty finance portfolio.”

About Fairstone:
Fairstone is a leading Canadian non-bank provider of responsible lending solutions. With roots in Canada since 1923 and over 200 branches coast to coast, Fairstone provides personal loans and home equity loans designed to suit today’s borrowing needs. Fairstone also partners with a wide network of businesses to deliver flexible consumer financing programs. Fairstone is proud to make a difference in the communities where we live and work, because community matters. Learn more at FairstoneCanada.ca.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.