Investcorp raises $372mln to invest in Italy's NPL market

Fund will be used to acquire loans at 'significant' discounts

A front view of Investcorp headquarter. Image used for illustrative purpose.

A front view of Investcorp headquarter. Image used for illustrative purpose.

Bahrain-based, alternative investment firm, Investcorp, has closed €340 million (372 million dollars) in commitments that it plans to put into Italy’s non-performing loans (NPL) through its vintage Italian Distressed Loan Fund II.

The fund, which invests in NPLs secured by residential and commercial real estate in Italy, is Investcorp’s second investment scheme eyeing the troubled credit market in the European state, and to date, more than €460 million in assets have been allocated towards it.

“Several years ago, we identified that many banks across Italy would need to reduce their credit exposure and strengthen their balance sheets, creating opportunities for investors with strong underwriting expertise,” said Timothy Mattar, global head of distribution at Investcorp.

“We know the Italian NPL market well and we have further strengthened our capabilities through partnerships with dedicated local expertise in the Italian credit market,” Mattar added.

According to Elena Ranguelova, portfolio strategist, there are “compelling opportunities” to invest in Italy’s non-performing loans at the moment.

“There are compelling opportunities to acquire attractive loans at significant discounts in the Italian NPL market. We believe that our latest NPL fund will help fulfill an important market need and we are committed to leveraging our expertise and resources to create value and help Italian consumers and businesses during this time,” she said in a statement.

The new fund is being exclusively advised by Milan-based advisory firm and credit specialist Eidos Partners.

Investcorp has billions of US dollars in assets under management spread across real estate, private equity, credit and infrastructure.

(Writing by Cleofe Maceda; editing by Seban Scaria)


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