LCM acquires UK NPL portfolio

The transaction follows a similar recent deal from the firm.

LCM Partners has acquired a portfolio of UK-domiciled non-performing loans, according to a company announcement. The portfolio is valued at £1.75 billion ($2.28 billion; €1.98 billion).

The firm recently acquired another NPL portfolio, valued at €3 billion. The sellers of the respective portfolios and terms of both deals could not be determined by time of publication.

It is understood the purchase was made by the firm’s Credit Opportunities III fund. The portfolio was already being serviced by LCM’s sister company, loan-servicing platform Link Financial Outsourcing.

Adrian Cloake, chief investment officer at LCM, told PDI roughly 50 percent of the firm’s portfolio purchases are via the Link platform. “LCM becomes the natural purchaser because we have the degree of confidence needed in the performance of the asset.”

Cloake declined to reveal who the third-party seller of the portfolio was. It is understood to be a major investment bank. LCM has carried out 17 such transactions during 2017.

The firm is also planning on raising €1.5 billion for a whole loan strategy. LCM recently told PDI it had secured €700 million towards this offering.