AnaCap Financial Partners has acquired a portfolio of non-performing and sub-performing loans from Volksbank Romania. Under terms of the agreement, AnaCap will jointly acquire the entire portfolio with H.I.G and Deutsche Bank.
AnaCap Financial Partners LLP (“AnaCap”), the specialist European financial services private equity firm, together with H.I.G. and Deutsche Bank, have completed the acquisition of a €495m portfolio of non-performing and sub-performing loans from Volksbank Romania. Under terms of the agreement, funds advised by AnaCap will jointly acquire the entire portfolio with H.I.G and Deutsche Bank.
The portfolio of 3,566 loans in total is backed by a mix of primarily residential, commercial real estate and development land. APS Romania will be appointed as Master Servicer.
The transaction is the largest of its kind in Romania to date, and came about as a result of the ongoing pressure on financial institutions across Europe to restructure and divest assets in order to clean up balance sheets and comply with new capital requirements.
After a prolonged correction following the financial crisis, the property market in Romania is now showing strong signs of improvement. GDP and unemployment have recovered on the back of labour market reforms in 2011 and an IMF financing package. House prices, which declined 38% since their peak in mid-2008, are now on the rise, with the areas surrounding central Bucharest and other main cities increasing 4% for 2013.
Justin Sulger at AnaCap, commented:
“We are delighted to have acquired this portfolio of loans, which highlights our ability to execute innovative and complex transactions across Europe. The portfolio is backed by a wide variety of real estate assets, requiring a range of resolution strategies, which necessitate a deep understanding of consumer and corporate debt in local markets and a highly analytical approach to valuation and on-going management.”
NOTES TO EDITORS
AnaCap Financial Partners LLP (www.anacapfp.com)
AnaCap Financial Partners is Europe’s largest specialist private equity investor in the financial services sector. Investing across Europe, AnaCap advises funds with more than €2.1 billion under management across Private Equity and Credit Opportunities vehicles as well as co-invest.
AnaCap’s Credit funds invest in European portfolios of consumer and SME debt, including performing, semi-performing and non-performing assets comprising of loans, leases, securities or other obligations.
The name AnaCap, an abbreviation of ‘Analytics before Capital’, forms the bedrock upon which our organisation is built. AnaCap adopts a highly analytical and granular approach towards the valuation and due diligence of potential investments, which is facilitated by the use of proprietary tools to price assets and which utilises our best-in-class, in-house credit management capabilities.
Our active asset management approach is supported by AnaCap’s extensive experience of owning, building and managing lending and full end-to-end servicing platforms, which helps inform servicer selection and oversight. Our key value drivers are in-house expertise and execution skills.