Buyout firm ActivumSG Capital Management has raised €550m (£488.5m) to target struggling hospitality companies across Europe.
ActivumSG, a private equity company which targets distressed companies with the intention of turning them around, said it was looking to invest the money across Germany, the Netherlands, Spain, Portugal and the UK.
It has already picked up a number of hotel groups in recent weeks, including Dutch-based operator Odyssey Hotel Group and Nobu Hotel Barcelona at the end of 2020, and indicated that it would continue with the strategy.
Chief executive and founder Saul Goldstein said: “We’re bringing much-needed liquidity to distressed situations and sectors. Hospitality was one of the first to fall into distress, which is why it’s a major investment theme for our fund.
“Standing assets are starting to offer value now after several years of prohibitive pricing. We’ve been steadily closing transactions for Fund VI and have sourced a strong pipeline of deals thanks to the experienced local investment teams we have on the ground.
“Having local networks is proving to be even more important now than before, given the travel restrictions in place.”
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