HIG Capital bags €110m in Portuguese assets

The value-add manager has bought two real estate-based portfolios of loans and assets.

US private investment firm HIG Capital has acquired two loan portfolios secured against real estate with a face value of €110 million from Finangeste, a Portuguese asset manager.

The portfolios are comprised of 114 secured loans and 77 real estate assets. 

The deal is the HIG’s 21st real estate investment in Europe since the beginning of 2013 and is part of strategy to target small- to mid-cap opportunities with a value-added component.

“We are pleased to complete this transaction, which gives us a strong platform for additional investments in both the Portuguese NPL and Real Estate markets,” Sanjoy Chattopadhyay, principal at HIG, said.

The group, which also has a credit arm called HIG Bayside Capital, has invested in continental Europe previously through loan portfolios in Spain and Italy and announced the launch of a €500 million loan platform co-managed with IDeA Capital funds in Italy in May. It has also purchased loans in Holland and in Central and Eastern Europe. 

More recently it bid alongside Blackstone and AnaCap Financial on the €2.7 billion loan book and servicing operations of Banca Comerciala Romana, owned by Austrian bank the Erste Group and dubbed Project Neptune. However, Erste pulled the sale because of pricing, PDI understands.

“We continue to acquire undervalued real estate assets and assets where we see an opportunity to add value by enhancing the income and quality of the asset,” Ahmed Hamdani, managing director at HIG in London, said commenting on the Portuguese deal. 

Spokespeople for the firm were unavailable for further comment.

HIG manages private equity and alternative asset investments with €17 billion of equity capital under management. The group’s debt funds invest in senior, unitranche and junior debt financing to companies both on a primary basis and on the secondary markets. It is also a CLO manager through its WhiteHorse vehicles and manages a publicly traded BDC, WhiteHorse Finance. Other HIG funds invest in real assets, real estate and shipping.