Copernicus Hires Ex-Altamira CEO Andrés Cerdán

21 September 2019 – Andrés Cerdán, who was previously the CEO of Altamira Asset Management, has joined Copernicus as CEO, according to market sources.

Cerdán had led Altamira since 2010 but decided to decamp after the firm was acquired by DoBank, a European firm controlled by Fortress, for about €360 million.

Copernicus, founded in 2013 by José Nestola, manages about €9 billion in NPLs and real estate assets for banks.

Original Story: El Confidencial – Agustín Marco

Adaptation/Translation: Richard D. K. Turner

Kutxabank Sells a €700M Property Developer Loan Portfolio to Bain

21 December 2018 – Cinco Días

Kutxabank has sold a “problem property developer loan” portfolio with a gross valuation of €700 million to a subsidiary of Bain Capital Credit. The portfolio includes doubtful assets and non-performing loans to property developers, according to a statement issued by the entity chaired by Gregorio Villalabeitia (pictured below).

The divestment includes both loans with mortgage guarantees, secured by land for the most part (48% of the total), as well as finished homes (another 29%). They are located in Andalucía and Euskadi.

The transaction has materialised through a competitive bidding process, which has been coordinated by the investment bank Alantra.

Sources at the vendor bank indicate that there is “a great investor appetite” in the market for this type of asset at the moment, a situation that has encouraged the entity to take the decision to divest these assets, the first operation of this kind that it has undertaken in its history.

The divestment will improve Kutxabank’s results this year and will reduce its exposure in the courts, due to the costs associated with the litigation relating to these assets. The bank has already calculated that, following this operation, its default ratio will improve by 50 basis points to fall below 4%.

The sale of the real estate portfolio will also have a positive impact on the bank’s CTE 1 capital ratio, which will increase by 10 basis points. According to the bank, it will thereby consolidate its position of leadership as the most solvent entity in the country.

Bain Capital Credit, with 200 employees, invests in the entire spectrum of loans, including leveraged loans, high-yield bonds and structured products, amongst others. Bain Capital has been advised in this operation by Copernicus, Aura, JLL and Allen & Overy.

Original story: Cinco Días

Translation: Carmel Drake

Bain Capital Raises €2,770M & Sets Its Sights On Spain

8 August 2016 – Expansión

Bain Capital wants to become one of the largest buyers of real estate in Spain. On Thursday, the US fund announced that it has completed the acquisition of three asset portfolios from Spanish banks, worth €1,146 million, over the last few months. The sellers are Cajamar, Sabadell and Bankia in three separate deals.

The acquisitions have been made through the fund’s Bain Capital Credit business unit, known until now as Sankaty.

And as if that weren’t enough, in the last few days, the US investor has completed the creation of a new fund in the USA worth $3,100 million (€2,769 million) for distressed investments (assets close to bankruptcy) and assets in special situations, according to Bloomberg.

“We see potential for making new investments in the Iberian Peninsula, especially in the real estate and overdue loan markets”, said Fabio Longo, CEO and Head of the real estate and overdue loan business in Europe at Bain Capital Credit. “We are excited about the opportunity to consolidate our position in the market for non-performing real estate assets in Spain through these investments”, added Alon Avner, CEO and Head of Bain Capital Credit’s European business.

Individual transactions

Of the three portfolios purchased, the largest was bought from Cajamar, containing €511 million of overdue syndicated and bilateral loans, granted primarily to real estate developers in different phases of bankruptcy. This deal, known as Project Baracoa, was the first major competitive sale of loans by a Spanish entity.

In addition, Bain Capital Credit acquired a portfolio of loans with a nominal value of €415 million from Sabadell, comprising overdue loans to property developers, mainly secured by residential and tertiary assets. This operation was known in the market as Project Pirene.

The most recent purchase by the US fund in Spain involved the Project Lane portfolio, comprising €220 million of foreclosed assets sold by Bankia. This was the first operation of its kind carried out by the nationalised group after the failed sale of Project Big Bang at the end of last year, through which it had wanted to sell all of the homes, developments and land on its balance sheet. In the end, Bankia was unable to reach an agreement with the investor who had expressed the most interest, Cerberus.

For all of these operations, Bain Capital has been advised by the asset managers Copernicus, HipoGes and Altamira; the consultancy firms Aura REE and CBRE; and the lawyers J&A Garrigues and Cuatrecasas.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

Aura REE Advises Sankaty On Purchase Of €560M Portfolio From Bankia

7 May 2015 – Sankaty Press Release

Sankaty Advisors, LLC, the independently managed credit affiliate of Bain Capital, announced yesterday that it has acquired a portfolio of secured loans from BFA-Bankia Group, through a controlled affiliate.

Aura REE provided real estate valuation advice on the transaction; J&A Garrigues acted as legal advisor; and Copernicus, a Spanish financial services company, assisted Sankaty with the transaction due diligence and will also act as the servicer for the portfolio post-acquisition.

The portfolio—which has a par value of €560 million—is made up of defaulted bilateral and syndicated Spanish real estate developer and SME loans, secured primarily on various real estate collateral. This is Sankaty’s second loan portfolio transaction with Bankia in the last 12 months, which further develops its experience and understanding of the Spanish market.

“We are excited to be making this investment in Spain, our second acquisition in the market in the last 6 months. This transaction further enhances our track record of investing in complex and idiosyncratic portfolios across Europe, where we have the ability to leverage our experience while remaining flexible to maximize value for our investors,” said Alon Avner, a Managing Director and Head of Sankaty’s European business, which has bought €2.7 billion in loan portfolios from European banks over the last three years.

Original story: Sankaty Press Release

Edited by: Carmel Drake