Key Takeaways
- • Arini Capital Management founder Melvyn Lemssouguer has exchanged contracts to buy a Georgian townhouse on Belgrave Square from Sir Dickson Poon for about £39 million, pending formal completion, according to people familiar with the transaction as first reported by the Financial Times.
- • Arini's flagship distressed debt strategy is down 32% since the start of 2024, as the firm told investors a market sell-off hit its large positions in risky corporate debt.
- • Arini has met margin calls from lending banks through recent asset sales and new investor capital, while managing roughly $22 billion in assets under management.
- • The firm has leased all eight floors and the basement of a 40,000 square foot office building near Hanover Square in Mayfair, with a move scheduled early next year after refurbishment.
Summary
Arini founder Melvyn Lemssouguer has exchanged contracts to acquire a Georgian townhouse on Belgrave Square, in London's Belgravia district, from Hong Kong luxury retail entrepreneur Sir Dickson Poon for about £39 million, according to people familiar with the transaction, as first reported by the Financial Times. The deal has not yet formally completed and could still fall through, leaving either party facing significant costs. The property, previously home to Prince Arthur of Connaught, sits near Buckingham Palace. Poon's sale is part of a broader exit from the UK, following his sale of Harvey Nichols to Frasers Group for about £40 million in a pre-pack administration in August after 35 years of ownership.
The purchase coincides with a difficult stretch for Arini. The firm's flagship strategy, which takes large positions in distressed corporate debt, delivered above-market returns after its 2022 launch and helped the firm grow to $22 billion in assets under management. However, Arini told investors last week that the flagship fund's value had fallen 32% since the beginning of the year as a market sell-off hit large positions in risky debt.
To meet margin calls from banks that had lent it money to increase buying power, Arini has used proceeds from major asset sales and new capital from investors. The contrast between these financing pressures and Lemssouguer's personal property expansion is likely to draw scrutiny from investors monitoring the fund's performance.
Lemssouguer, a former Credit Suisse trader, already owns a 400-year-old Tudor estate outside London. In January he set up Jersey-based family office LIO Limited to oversee his wealth and property holdings; his wife, Aline Lemssouguer, is listed on LinkedIn as LIO's head of real estate investments. LIO has since incorporated several UK property investment vehicles. Separately, Arini agreed earlier this year to lease all eight floors and the basement of a 40,000 square foot office building near Hanover Square in Mayfair, with the firm scheduled to move in early next year after refurbishment works finish.
The purchase coincides with a difficult stretch for Arini. The firm's flagship strategy, which takes large positions in distressed corporate debt, delivered above-market returns after its 2022 launch and helped the firm grow to $22 billion in assets under management. However, Arini told investors last week that the flagship fund's value had fallen 32% since the beginning of the year as a market sell-off hit large positions in risky debt.
To meet margin calls from banks that had lent it money to increase buying power, Arini has used proceeds from major asset sales and new capital from investors. The contrast between these financing pressures and Lemssouguer's personal property expansion is likely to draw scrutiny from investors monitoring the fund's performance.
Lemssouguer, a former Credit Suisse trader, already owns a 400-year-old Tudor estate outside London. In January he set up Jersey-based family office LIO Limited to oversee his wealth and property holdings; his wife, Aline Lemssouguer, is listed on LinkedIn as LIO's head of real estate investments. LIO has since incorporated several UK property investment vehicles. Separately, Arini agreed earlier this year to lease all eight floors and the basement of a 40,000 square foot office building near Hanover Square in Mayfair, with the firm scheduled to move in early next year after refurbishment works finish.
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