Bain Capital Credit made its first acquisition in the Portuguese banking and believes there are more investments to be made, namely in real estate and in non-performing loans (NPL).
Caixa Geral de Depósitos (CGD) sold 476 million euros in NPLs to the private equity fund Bain Capital Credit. The North-American fund acquired another 489 million of the loans from the Spanish bank Ibercaja.
We see the potential for further investment in Portugal, particularly in the real estate and non-performing loan markets.
The credit portfolios purchased by Bain Capital is mostly made of “bilateral real estate loans guaranteed by small and medium enterprises and by some large enterprises”, the fund explains in a press release. “The guarantee for these loans collaterals includes a broad arrange of assets, including residential real estate development projects and land parcels“, the press release adds.
This is the fund’s first acquisition in the Portuguese banking and Bain Capital aims to continue investing in Portugal. “We see the potential for further investment in Portugal, particularly in the real estate and non-performing loan markets”, states Fabio Longo, Bain Capital administrator. As for Alon Avner, the head of Bain Capital Credit for Europe, he states the fund believes “it is the right timing to expand in Portugal, we intend to make new deals for the future”.
Bain Capital Credit has been making acquisitions in Spain since 2014. The 489 millions purchased this week to Ibercaja come from credit granted to investors in the real estate sector.
These acquisitions were announced on the same day the EU Finance ministers reached an agreement about the plan to speed up the solution for the NPL problem in Europe; the plan will be implemented throughout Europe and aims to improve the banking in the Union.