Balbec holds first close at $560m for fifth NPL fund

The fund is set to be the firm’s largest vehicle to date and will target consumer NPLs.

Specialist NPL investor Balbec Capital is thought to have raised more than $560 million for its fifth flagship fund.

According to sources close to the situation, InSolve Global Credit Fund V has now held a first close and is expected to be Balbec’s largest fund to date.

The fund will invest in the same strategy as its predecessor funds, acquiring consumer mortgages and loans which are subject to Chapter 13 bankruptcy or equivalent.

The source said the firm’s previous fund is now fully committed with extensive recycling and had achieved a mid-teens return between inception in March 2019 and the end of 2020.

Scottsdale-based Balbec held a final close of its fourth fund on $1.2 billion in 2020, above its $1 billion initial target.

Balbec was founded in 2010 and has since deployed $7.5 billion in non-performing loans across 21 countries.

Balbec Capital declined to comment.