US fund sees turnaround opportunities in Europe

“We don’t have an office or a professional either in the UK or on the Continent and we are very surprised by the phone calls here to New York,” Michael Psaros, co-founder and managing partner of KPS Capital Partners LP, said at the Reuters Private Equity and Hedge Funds Summit in New York on Monday.

“A lot of the phone calls are with respect to large European corporates having businesses that are underperforming and they’re seeking to divest them,” Psaros said.

After being contacted by several large European diversified manufacturers, Psaros says he is “actively looking” at doing deals in Europe.

“Things are slower in Europe, but we think it’s going to be a real bright spot for us in the next two to three years,” Psaros said.

KPS, which typically invests in distressed, turnaround or bankruptcy situations has about $1.6 billion to $1.7 billion of capital still left in its $2 billion third fund that it is looking to invest in companies over the next few years, Psaros said at the summit.

(Reporting by Emily Chasan; Editing by Tim Dobbyn)