APS Acquires Retail Loan Portfolio Worth CZK 1.6 Billion from KRUK, Strengthening Its Position as a Leading Player in Central Europe

APS Holding, through APS Investments, has completed the acquisition of a retail loan portfolio from KRUK Czech and Slovak Republic. The transaction includes approximately 45,000 loans with a nominal value of CZK 1.6 billion, making it the largest secondary debt market deal in the Czech Republic this year. With this acquisition, APS has further strengthened its position as a leading investor in non-performing loans across Central Europe.

“We are pleased to have concluded a fair transaction with a strong partner. The portfolio represents a stable source of cash flows and an attractive investment opportunity,” said Petr Kohout, CEO of APS Investments. “In the Czech Republic, opportunities to acquire large loan portfolios directly from banks or smaller lending institutions are declining due to the low level of non-performing loans. By contrast, secondary-market transactions—where debt investors trade portfolios among themselves—are becoming more frequent.”

APS Holding has more than twenty years of experience in distressed-debt investing. It has long partnered with leading global investors, including Apollo Global Management, Bank of America, Lone Star, Bain Capital, IFC and EBRD. The company currently operates in 15 countries, with Romania, Greece, and Poland among its key markets. Most recently, APS expanded into Canada.

The Role of APS in the Economy

Companies like APS play an important role in the economy:

• Helping banks clean up their balance sheets and free up capital for new lending.
• Offering debtors fairer options to resolve their obligations, such as installment plans.
• Providing investors with access to attractive opportunities delivering stable returns, uncorrelated with traditional asset classes.

APS possesses unique know-how that allows it to consistently deliver above-average returns to its investment partners. This model is highly valued not only by global institutional investors but also by nearly a thousand Czech qualified investors who now benefit from it through the Rhapsody sub-funds.

The distressed debt business has become a widely recognized segment of alternative investments. It plays a crucial role in maintaining financial system stability, offers portfolio diversification, and delivers attractive returns. The target yield of the Rhapsody sub-funds is 12% per annum.