Pillarstone, the non-performing exposure specialist arm of KKR Credit, has finalised agreements with two Greek banks to manage non-performing loans.
The firm will now begin taking on the governance of non-performing loans for Alpha Bank and Eurobank. Pillarstone had entered into a framework agreement with the two institutions in May last year. It has now been granted a license by the Bank of Greece to begin operations.
As part of its operation, Pillarstone doesn’t acquire non-performing loans from banks, but takes on the governance of these assets. The aim is to help with recovering the value of the assets, potentially sharing in some of the profits should the value of a non-performing loan rise above par. Pillarstone also receives a management fee for this service.
The firm also has operations in Italy – another European country with a large supply of non-performing loans. That operation began with agreements between Pillarstone and two Italian banks – UniCredit and Intesa Sanpaolo. The firm then subsequently entered into an arrangement with an additional bank, Banca Carige.
It is anticipated Pillarstone’s operations in Greece will also seek to expand beyond the initial two partners.