Lone Star To Buy Fortis Toxic Asset Vehicle

May 2 2013 | 9:38am ET

Lone Star Funds and Credit Suisse Group have agreed to buy Fortis' so-called "bad bank."

The hedge fund and bank will pay €6.7 billion for Royal Park Investments, which holds the collapsed Belgian bank's toxic assets. The special-purpose vehicle was set up in 2009 with €1.7 billion of equity from Fortis shareholders, by Fortis, the Belgian government and BNP Paribas.

The Belgian government will get €1 billion from the sale, and Ageas, the insurer left over from the nationalization and breakup of Fortis, will get €1 billion.

"This is another major step forward in simplifying our company and will eliminate the uncertainties linked to the evolution of the value of these assets," Ageas CEO Bart De Smet said.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...