Banks that are weighed down by non-performing assets find it hard to attract new capital for new lending; they must make provisions for the risk of losses and regulators require more capital to be set aside by banks as a buffer for the risk that losses will crystallise and threaten the banks’ solvency.
Banks, borrowers and the economies in which the banks operate, are all worse off as a consequence because their traditional suppliers of credit are prevented from lending.
Banks can deal with these non-performing loans in a number of ways, via a bank workout, special purpose vehicles set up to manage the assets off balance sheet, or packaging assets into securitisations.
At Capita we provide a comprehensive range of services whatever the preferred option. We are the market leader in European distressed debt administration and servicing. We provide expert support throughout the entire loan lifecycle, delivered by teams in the UK, Ireland and continental Europe.
This enables us to help banks create liquidity and unlock capital for reinvestment in other value adding lending activity benefitting the economy more broadly.
We are the market leader in European non-performing loan (NPL) administration and servicing. We provide expert support throughout the entire loan lifecycle, from due diligence and set up, to purchase and onboarding, to asset administration and close out.
A streamlined process, quicker return on your investment
Outsourcing to us means you won’t have to deal with the administration, procurement and management of multiple suppliers. You get a comprehensive service from a single supplier. You’ll have one relationship and one point of contact from the initial due diligence and SPV set-up, all the way through to close out. The efficiencies we provide will allow you to focus on your core investment activities, therefore enhancing your return
Adding value at every stage
We’ll save you time, money and hassle at the due diligence stage. We have the latest IT platforms and resource for onboarding, resulting in speed, efficiency and no disruption to cash flow whilst the portfolio is transferred. Our asset management team can improve recovery rates and enhance the value of the underlying asset. We deliver on our promises so you can deliver on yours.
We’re experts in our field
We are not just back-office administrators. Our team consists of originators, underwriters, lawyers, banking professionals, qualified real estate advisors and property experts. We have mandates with full delegated authority and so have experience making crucial credit decisions - this means we speak your language. Our senior team averages 23 years in the industry and eight years in the role.
Relieving the regulatory burden
We help businesses manage regulatory change and compliance on a daily basis. We’re aware that there’ll be differing requirements for investors in different markets. We have experience of the varying regulation in different fund domiciles. We know that there’ll be different accounting treatment required for investments made across multiple markets. No matter how complex or simple your operation, we can handle the governance.
An unrivalled suite of NPL services
Due diligence and set-up
- Loan, property and legal due diligence
- Facility letters and documentation
- Loan, trend and market analytics
- SPV and corporate set-up
- Fund set-up
- Registrar and transfer agency.
- Finance and legal
- Risk and compliance
- HR and pensions
- Banking and IT
- Tax, insurance and audit
- Property and facilities
- Deed and security management.
Asset and loan management
- Real estate services
- Loan and covenant monitoring
- Insurance monitoring and collection
- Loan administration
- Loan servicing and monitoring
- Debtor engagement
- Settlement negotiation including Discounted Pay Off (DPO)
- Know your customer (KYC) and insurance collection
- Legal services
- Asset disposal including private treaty and auction
- Close out of administration / LPA
- Security release
- Drafting of settlement agreement document
- Residual debt write off