Hilco to raise $150m distressed retail fund

The Toronto-based private equity firm has also opened an office in Dubai to help it 'take a closer look at opportunities internationally’.

Hilco Consumer Capital intends to raise a $150 million fund to invest globally in distressed consumer retail  brands.

The fund, which will invest opportunistically, will focus on intellectual property and a global licensing model. It is expecting a first close very soon, Reyaz Kassamali, Hilco’s managing director, said in an interview. 

Hilco helps companies navigate the complex bankruptcy procedures and also helps to run the brands. The firm is presently in discussions with potential investors, which include high net worth individuals as well as institutional investors.

“Currently, LPs can participate in deals as they see fit and as we go along. It is anticipated that new funds would be committed capital and Hilco would direct investments based on LP commitments,” said Kassamali. The firm has a number of deals in the pipeline. “A new one comes up every week,” he added.

Separately, Hilco has opened an office in Dubai. Scott Hupe, a managing director of the firm, will spearhead the new office. As the firm is based in North America, its investment opportunities to date have been focused there. However, with its new push internationally, it will take a closer look at opportunities internationally, according to Kassamali.

This January, Hilco and investment firm Gordon Brothers Group paid $1 million for the intellectual property of Linens ‘n Things, a bankrupt portfolio company of Apollo Global Management. In 2006, an Apollo-led consortium acquired Linen ‘n Things for $1.3 billion.

Hilco is a subsidiary of Chicago-based The Hilco Organisation, a business asset acquisition and specialized corporate finance company.