SC Lowy, Hong Kong-based boutique investment bank, is believed to have taken a position in Gaucho, which was placed into administration last month.
MCA understands that SC Lowy has bought up debt in the premium steak chain, from four of the company’s five-strong banking group. It is now thought that only Investec remains from that original banking group.
It is thought that SC Lowy has taken on some of Gaucho’s c£50m debt for between 30p and 40p in the pound.
The new investor could now put further money into the business, backing the existing management team in the process.
However, MCA understands that a further bidding round is due next Monday, suggesting that SC Lowy could make an instant return on its new investment through a sale of the business, which is valued at c£25m-£30m.
Luke Johnson, who is thought would look to back the existing management team; the Carlyle Group; Endless; Newcastle-based hospitality operator The Cairn Group and Aurelius Equity are all thought to have made initial bids for the 16-strong business.
It is thought that the underlying Gaucho business remains robust, but that the longer the process goes on the less time a new investor will have to build momentum before the crucial run up to Christmas, especially in terms of securing corporate bookings.
Previous backer Equistone had a £20m bid for Gaucho rejected by the banks before the business was placed into administration with Deloitte.
It is understood that any successful bidder could have to carry out a Company Voluntary Arrangement (CVA) of the business, in order to keep the estate in one piece, and immediately pay an outstanding tax bill of more than £1m.
Richard Caring and D&D London were believed to be amongst the parties to have shown an interest in acquiring parts of the Gaucho estate, with sites in Swallow Street, the O2 and Richmond seen as the “jewels in the group’s estate”.
SC Lowy, which focuses on distressed and stressed credit, was founded in 2009 by Michel Lowy and Soo Cheon Lee after both worked on Deutsche Bank’s special situations desk.
