US firm to buy up more distressed Irish loans
A US investment firm that bought €380m of Irish property loans at 25 cent in the euro last month is set to raise a massive new war chest for more distressed loan deals.
CarVal Investors, the asset management arm of US agrifoods giant Cargill, has now raised an extra $1.1bn (€825m) to invest in loans being sold off by under pressure banks in Europe.
The new war chest means further Irish deals could be on the way for CarVal.
Last week CarVal hired Australian-owned Pepper to manage its newly acquired Irish loan book, under a deal that sees the Australians invest €3m for a share of the portfolio.
That came after a deal in December when CarVal bought a portfolio of Irish commercial loans originally issued by Bank of Scotland (Ireland) that have been sold off by the bank's owner Lloyds Bank, at a price of 25 cent in the euro.
The newest CarVal fund, The CVI Credit Value Fund II, which CarVal expects to close later this year, will invest in a range of debt, including corporate bonds, mortgage-backed securities and loan portfolios, the company said.
"The fund will invest globally in distressed credit opportunities coming from the deleveraging of financial institutions in Europe and beyond," according to the statement.
Banks in Europe are expected to sell off about €60bn of loans this year, up from €45bn in 2012, according to PWC.
Irish banks were among the big sellers of debt last year. (additional reporting Bloomberg)