Market updates and sector developments

ION subsidiary X3 Group is set to acquire Prelios from Davidson Kempner Capital Management. Established in 1990 in Milan, Italy, Prelios has more than €40bn of assets under management across non-performing loans, unlikely-to-pay exposures and real estate funds. Since investment funds advised by Davidson Kempner acquired the business in 2018, Prelios has grown its revenue from €100m to over €300m while significantly improving profitability.

UniCredit, Intesa Sanpaolo and BNP Paribas led the consortium of banks - also including Banco BPM, Standard Chartered Bank and Mediobanca - that are providing financing to X3 for the transaction. Completion of the acquisition is subject to the authorisation of the relevant authorities.

In other news…

ABS CDO transferred
TCW Asset Management Company has assigned its rights and obligations as investment adviser for Inman Square Funding II to Dock Street Capital Management, pursuant to an assignment and assumption agreement. Effective as of 14 September, the assignment will not affect the current ratings of any notes issued by the ABS CDO, according to Moody’s.

Vesttoo injunction inked
The US District Court for the Southern District of New York has temporarily frozen Vesttoo’s assets in New York, following an injunction brought by Aon’s White Rock Insurance (SAC) vehicle, pending arbitration of its claims of a “large-scale fraud scheme” surrounding letters of credit provided by Vesttoo to collateralise reinsurance transactions facilitated by White Rock (SCI 2 August). A court hearing is scheduled for tomorrow (15 August), in which Aon is seeking the return of US$136.7m in collateral that it distributed to Vesttoo under the agreements.