Exclusive: CVC appoints former RBS restructuring head

Derek Sach, who led the Royal Bank of Scotland’s restructuring unit until March, joined CVC Credit Partners in an advisory role in April

CVC Credit Partners have brought Derek Sach (pictured) on board as an advisor, PDI can reveal. Sach joins from Royal Bank of Scotland (RBS) where he headed the global restructuring group (GRG), the unit that holds and winds down bad assets for the state-controlled bank. 

Sach has taken a part-time advisory role with the non-bank lender. His career has encompassed private equity at 3i, a combination of debt and equity at Royal Bank of Canada as well as heading up the restructuring activities of RBS as it cut its balance sheet. This experience as well as a broad network of connections within the industry leave him well placed to advise CVC’s credit platform, Sach told PDI

Asked about the development of the private debt market, he said that new bank regulations including vastly increased capital ratios meant that the lending market is fundamentally altered leaving room for private funds with long-term capital.
“The world doesn’t yet know that this [private credit] is available to them,” added Sach. 

RBS is in the process of winding down the restructuring unit which at one point employed 1,200 people. GRG came under scrutiny by the UK parliament last year when a government advisor accused it of turning a profit by forcing viable UK SMEs into administration. In June last year Sach and Chris Sullivan, then deputy chief executive of RBS, gave evidence to a parliamentary committee arguing that the unit was not a profit centre. In the wake of the hearing, RBS chairman Sir Philip Hampton wrote to the committee chairman Andrew Tyrie clarifying that the primary purpose of GRG was to minimise losses by the bank and apologised for unintentionally misleading evidence presented to the committee by Sach and Sullivan.

CVC Credit Partners, the credit arm of private equity firm CVC Capital Partners, has $12 billion of assets under management in the US and Europe.