Phoenix Asset Management (PAM), independent asset manager and special servicer focused on the management of secured and unsecured non-performing loans (NPL) and unlikely to pay (UTP) portfolios has announced an investment by funds managed by Pimco – as institutional investors.
Following the deal, PAM together with the other founding partners will hold 40% of the corporate capital AnaCap Financial Europe investment entities will continue to hold a 30% stake and Pimco investment entities will hold the remaining 30% stake. In continuation of the existing strategy. PAM will still operate as an independent platform for special servicing with the current management team confirmed. The Closing is expected by 13th April 2018, given that the European Commission has already authorized the operation.
The institutional investors will continue to support PAM in its development plan in the Italian market in relation to the management of secured and unsecured non-performing loans (NPL) and UTP portfolios through tailor-made structured workout solutions, as well as through the implementation of important ancillary functions, such as the management and execution of Reoco strategies.
In the context of a continuing ECB spotlight on Italian banks, coupled with progressive legislative and accounting reforms, PAM has developed a specialist workout proposition tailored to a diverse set of NPL and UTP portfolios addressed to banks and financial investors, in parallel building on consolidated partnerships with international investors. Thanks to the experience gained since 2011 by Phoenix Investment Partners in the advisory of opportunities on the Italian financial market on behalf of international investors, in 2014 Phoenix Asset Management (PAM) was established as an independent platform for the management of secured and unsecured non-performing loans (NPL) and unlikely to pay (UTP) portfolios, with a focus on complex initiatives and value-add positions, often regarding real-estate backed projects. In addition, the Company provides due diligence services and advisory on portfolio acquisition and in the restructuring of securitization operations, along with identifying investment opportunities in specific real estate deals and corporate turnarounds.
As a special servicer, PAM currently has circa €9bln of GBV under management across 11 NPL/UTP portfolios. In addition, over the last two years, the Company has conducted further diligence for NPL/UTP acquisitions in excess of €20bln of GBV on behalf of international investors.
Steve Lennon, founder & CIO of Phoenix Asset Management said “The presence of our institutional partners will support PAM in the acceleration and optimization of our growth plan, and extending the panel of clients across banks and international investors. As an independent servicing specialist for NPL and UTP portfolios, working with significant alignment to our clients’ objectives we aim to unlock the embedded value in the portfolios and in the underlying collateral, thanks to the consolidated expertise in the implementation of diversified strategies, involving analysis, management, cure, deleveraging, or even additional capital to fuel restructuring plans or complex RE initiatives.”