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Incus acquires €80m GE Capital portfolio – exclusive

The deal is the second transaction with GE Capital in Incus’s fund, which targets investments in Spanish and Portuguese SMEs. The fund has a target IRR of 20%.

Madrid-based specialised credit firm Incus Capital has purchased a Portuguese mortgage loan portfolio from GE Capital with an outstanding payment balance of €80 million, market sources have told PDI.

Acquired at a discount, the transaction is the second GE Capital transaction in Incus’ credit fund, Incus Capital Iberia Credit Fund II, which provides credit to Spanish and Portuguese small and medium-sized enterprises. The fund is eyeing up a final close of €300 million in June and recently hit €175 million on a first close completed last month.

“GE Capital is one of numerous companies Incus has successfully completed repeat transactions with. Companies value our speed and flexibility when evaluating financing options. There is clear need for an alternative credit provider like Incus in the small and medium end of the market,” said Andrew Newton, founding partner of Incus in an exclusive statement seen by PDI.

The target return on the transaction is unknown, but the fund has an overall target IRR of 20 percent. The latest transaction follows a deal between the two parties completed last year. In December, Incus acquired a portfolio of Spanish equipment leasing assets loans valued at €35 million.

Established in 2012, Incus provides liquidity to companies which assets including utility concessions, government claims, equipment leases and real estate in order to assist with growth. Based in Madrid, the firm targets deal sizes between €10 million and €30 million and as of June 2016 had more than €500 million in assets under management.