Private Equity Firm Restructures As Era Of Growth Fades

An entity employing UK staff of private equity firm Round Hill Capital is looking at reorganisation as the company readies itself for a period of lower growth.

RHC Europe LLP has been put into liquidation, React News reported. Begbies Traynor was appointed to oversee the process.

Of the company's 64 UK roles, 34 are under review, React reported, with the company saying its Nido student housing operating business and proptech investment arm Round Hill ventures are not part of the review.

An ESG-focused developer set up by the company called Modomo was put into liquidation earlier this year.

Round Hill, led by former Morgan Stanley Real Estate director Michael Bickford, is big in beds sectors like student housing and rented residential. In the UK, it is best known for buying the Nido student business from Blackstone for £415M in 2012 before selling it to Greystar for £600M in 2015.

“Having in recent years staffed the business for growth, we are now operating in a market that has shifted rapidly, which will predicate a period of slower activity,” Round Hill said in a statement.

“In response, we have for a number of months been undertaking an operational reorganisation process to ensure that we can optimally service the current platform, including our asset management and development JV partners, across our circa $6B global portfolio.

“This has been a difficult process, but is one that will enable us to remain resilient during this volatile period, and we retain a high conviction in our strategy.”

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