AnaCap buys €551m loan portfolio

The financial services specialist acquired the portfolio of performing salary-secured loans from Italian lender Gruppo Monte dei Paschi di Siena.

AnaCap Financial Partners, a financial services-focused private equity group, has acquired a portfolio of performing loans from Gruppo Monte dei Paschi di Siena in Italy.

The loan book comprises €551 million-worth of performing salary-secured loans (known as ‘cessione del quinto’ or CQS loans in Italy), AnaCap said in a statement. There are 39,700 loans in the portfolio, all of which are performing.

“Structual credit enhancement features mean CQS loans have very low historical over-the-life losses,” AnaCap said. They are regulated under Italian law and benefit from multiple layers of default protection, including insurance against unemployment or employer default.

AnaCap said it planned to “broadly retain” the portfolio’s existing servicing arrangements, with overall supervision strengthened through the appointment of a master servicer to oversee the underlying sub-servicers.

The deal is AnaCap’s fourth in Italy over the last 12 months.

Justin Sulger, a partner at AnaCap, said in the statement: “This portfolio provides attractive risk-adjusted returns, facilitated by our granular approach towards the valuation and due diligence of potential investments, as well as AnaCap’s extensive experience owning, building and managing regulated lending and servicing platforms. We also see the possibility of deploying further capital in new CQS origination over time, as local banks struggle to grow what is historically a well-established product that they can no longer fund as efficiently as they once could.”