LONDON--(BUSINESS WIRE)--KKR Credit today announced that leading business turnaround specialist and former Global Head of Strategic Investments at Royal Bank of Scotland, John Davison, will assume the role of CEO of Pillarstone.
Pillarstone is the pan-European platform recently launched by KKR Credit to support banks in managing their exposures to non-core and under-performing assets including corporate loans, real estate and shipping, by improving the performance and value of the businesses which underpin the exposures.
John Davison brings a strong track record of working with business owners and managers to turn around businesses to create long-term value for a broad range of stakeholders. In his previous role as Global Head of Strategic Investments at RBS, John Davison was involved in the successful turnaround of businesses in the corporate, real estate and shipping sectors.
There are €1.9 trillion of non-core and under-performing assets, including €1.2 trillion of non-performing loans, sitting on the balance sheets of European banks. These assets are capital intensive and are ultimately restraining the growth of banks and companies, as well as the economies in which they both operate. Pillarstone’s solution helps to unlock bank lending and rebuild companies, supporting local and national economies in turn.
Johannes P. Huth, Head of KKR Europe, Africa and Middle East, said: “We are excited to be teaming up with John Davison for Pillarstone. The UK was ahead of the curve in Europe in addressing the issue of non-performing loans, and John’s expertise played a big part in that. The combination of his unique business acumen and our ability to provide fresh long-term capital allows Pillarstone to offer a timely solution to banks across Europe in managing specific exposures, including corporate loans, real estate and shipping.”
Mubashir Mukadam, KKR's European Head of Special Situations, said: “Pillarstone has commenced work in Italy, working with UniCredit and Intesa Sanpaolo, and we are evaluating opportunities in other European countries. With John joining as CEO and co-investor, Pillarstone will now deepen and widen its roll-out on a pan-European scale.”
John Davison said: “Pillarstone offers me the opportunity to build a scaled international platform to support banks in successfully managing their non-performing loan exposures by turning around the businesses that underpin them with the substantial support of KKR’s resources and network across Europe, as well its global expertise and knowledge. This is the perfect time for us to build out Pillarstone which will provide significant economic benefits to a wide range of stakeholders right across Europe.”
Pillarstone is a portfolio company of certain funds and accounts managed or advised by KKR Credit. John Davison will become a co-investor in Pillarstone.
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KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
Pillarstone is a pan-European platform that works with European banks to create value by managing their exposure to non-core and underperforming assets on their balance sheets. The platform will provide long-term capital and operational expertise to help the businesses which underpin these non-performing and non-core exposures to stabilise, grow and create value. Pillarstone is a portfolio company of certain funds and accounts managed or advised by KKR Credit. Pillarstone will have access to the full global resources of the KKR platform. John Davison will join as the CEO of Pillarstone.
About John Davison
John started his career as a strategy consultant at Booz and McKinsey before working in Private Equity with The Carlyle Group, Warburg Pincus and Bridgepoint. He joined RBS in 2011 as Global Head of Strategic Investments and a member of the Management Team of RBS Restructuring where he worked closely with the Asset Protection Agency. When John joined RBS Restructuring it was responsible for a large portfolio of corporate, property and shipping NPLs globally and a portfolio of directly owned property and equity positions that has been reduced significantly. John has an MA from Cambridge University, an MBA from Harvard Business School (where he was awarded the Paul Revere Prize) and represented Great Britain in the Sydney Olympics.