Bahrain-based alternative investment manager Investcorp has secured US$378.5 million (€340 million) in commitments for a new fund targeting Italian distressed credit.
The Italian Distressed Loan Fund II will invest in non-performing loans (NPLs) secured by residential and commercial real estate. Investcorp will be exclusively advised by Milan-based Eidos Partners.
This is Investcorp’s second fund to focus on Italy’s troubled credit market and with the help of Eidos Partners and the firm has so far allocated €510 million to the strategy.
“Several years ago we identified that many banks across Italy would need to reduce their credit exposure and strengthen their balance sheets, creating opportunities for investors with strong underwriting expertise,” said Timothy Mattar, global head of distribution at Investcorp.
“We know the Italian NPL market well and we have further strengthened our capabilities through partnerships with dedicated local expertise.”
There are “compelling opportunities to acquire attractive loans at significant discounts in the Italian NPL market,” said Elena Ranguelova, portfolio strategist at Investcorp, adding that the latest NPL fund “will help fulfil an important market need”.
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