Buy-Side Advisory Services for NPL Investor

Buy-side advisors act as a strategic partner, managing the entire NPL lifecycle and ensuring compliance with regulations like the EU's NPL templates and EBA guidelines. 

Phase 

Advisor Role & Services

Portfolio Acquisition & Due Diligence

Identifying and Valuing Targets: Sourcing both on-market and off-market portfolios (often via proprietary networks), and performing independent valuations using various models (e.g., discounted cash flow). Due Diligence: In-depth review of loan documentation, collateral valuations, data integrity, and legal/tax risks to uncover hidden liabilities.

Structuring the Case & Negotiation

Deal Structuring: Advising on optimal transaction and financing structures, including forward flows or securitizations, to manage capital and risk exposure. Negotiation Support: Handling negotiations to secure favorable terms, pricing, and specific deal clauses (e.g., representations and warranties).

Legal Proceedings & Repossession

Legal Coordination: Managing legal teams to navigate the complex and jurisdiction-specific debt recovery and foreclosure processes. Collateral Enforcement: Overseeing the legal steps for enforcing underlying collateral and managing the physical repossession of assets (Real Estate Owned or REO) when necessary.

Asset Management & Sale of Project

Workout Strategies: Defining and implementing tailored recovery strategies, including loan restructuring, settlement negotiations, or debt sales. Asset Sales & Marketing: Managing the sale of foreclosed real estate assets (REOs) or the NPLs themselves, often using online auction platforms to ensure transparency and reach a wide investor base.

Key Benefits for the Investor

• Expertise and Efficiency: Advisors bring specialized knowledge in NPL deal-making, which is often lacking in an investor's internal team, streamlining complex processes.
• Risk Mitigation: Thorough due diligence and legal oversight protect the investor from unforeseen financial or legal problems associated with distressed assets.
• Optimized Returns: Strategic valuation, deal structuring, and efficient asset disposal maximize the investor's return on investment (ROI).
• Project Management: The advisor acts as a central coordinator for all third parties (lawyers, accountants, servicers), ensuring clear communication and timely execution through to deal closure and post-acquisition follow-up.