APS Investment Advisory
 

Investment Advisory

Our team was engaged in investment advisory with respect
to distressed debt and assets, since early 2000s as APS pioneered the very first NPLs portfolios‘ trades in the CEE markets. We delivered large number of complex and landmark deals and helped to open up markets in the SEE and CE countries as well as Hellenic space. We are proud to be one of the movers and shakers in the region helping to develop the industry and developing with it.

The APS Investments, a dedicated investment advisory company within the APS group, combines highly experienced teams with unique and thorough investment process and infrastructure.The company is headquartered in Luxembourg with operating branches in Prague, Bratislava, Bucharest and Vienna.

This enables us to successfully execute transactions across European emerging markets combining traditional distressed debt and distressed RE acquired as portfolios, or single credits, or as a part of complex holding and operating structures.

 

We have also successfully invested in special situations, such as disposals of non-banking financial institutions with portfolios of assets on the books. We are also looking at opportunities in Western Europe and starting building the track record and confidence there.

We are a trusted partner of the world’s top financial institutions, investment funds, LPs and private investors, but also enjoy support of IFIs, including IFC, a member of the World Bank and EBRD.

By investing in distressed debts, assets and situations, we do not only bring value to our clients, but also provide solutions to help deleverage local economies.

Team and infrastructure

Robust and experienced investment team enables us to cover large number of transactions across the region and funnel the most perspective ones efficiently through assessment and underwriting process. International investment team combines investment banking expertise with strong analytics and we are known for dedication, diligence and persistence. The in-house team of experienced investment managers leading individual transactions works closely with dedicated analysts team processing valuation models. 

The in-depth understanding of local specifics is one of the key elements enabling us to manoeuvre in the competitive environment without unnecessary compromise in the returns. APS possesses and utilises its unique infrastructure of regional underwriting team tying closely with the local recovery teams covering full investment mandate from origination through acquisition and management of the transactions.

Product 

We acquire and manage distressed debt for more than 15 years since the start of the markets and understand it in-depth across all categories. We understand the cycles and lived successfully through them. We know the motions around the sellers, advisors, buyers and investors. The investment mandate targets:

Loan portfolio

  • Non-performing loans
  • Sub-performing loans
  • Performing loans
  • Across all credit category (secured, unsecured, corporate, retail, leasing)

Distressed situations

  • Repossessed RE portfolios
  • Single credits & restructurings
  • Operating financial institutions and companies with loans or RE portfolios

Over 15 operating companies holding portfolios of assets

  • APS advised funds and managed accounts totalling above EUR 235 million
  • Serraghis Loan Management, non-regulated investment vehicle, Cyprus, over EUR 18m invested 2010-2014
  • APS Fund Alpha, regulated investment fund (de-licensing in process given approaching end of the life-time of the fund), Czech Republic, over EUR 14m, invested 2014-2016 
  • APS Beta, managed account for IFC, regulated investment fund, de-licensed in [2018], Czech Republic, over EUR 20m, invested 2014-2018
  • Loan Management, regulated investment fund, Czech Republic, over EUR 85m, invested 2016-2019
  • EUR 100m managed account with IFC, a member of the World Bank; investment period pending since late 2018
  •  Over EUR 800 million co-invested by dozens of top international investment banks, funds, private investors and HNWI between 2002-2019

 

The investment track record highlights

With our international team and extensive network throughout the region, we are experts in local markets and culture. This allows us to adapt to changes quickly and underwrite and manage investments to deliver desired returns to our client.

  • €9.0 billion NV* of acquired assets and over € 800 million of funds deployed¨
    *Based on nominal value at acquisition
  • above 15 years of investment and management experience
  • >20% weighted average IRR achieved **
  • >1.45 weighted average net multiple realised **
    ** Based on track record from reached collection. Five years performance.
  • 90 investment made and managed
  • 87 distressed-debt portfolios (including REO sub-portfolios); 3 performing consumer finance and leasing portfolios
  • 5 regulated financial institutions acquired and several other established to hold portfolios of assets
88
€9.0 bn

Process

The success starts in sourcing and origination and this is particularly strong part of our strategy. Local, regional and global angles of our infrastructure enable to access vast majority of transactions and situations and create and maintain extensive pipeline across European emerging markets. We clearly see everything that other don’t.

The underwriting process captures real feedback and future plans from APS local recovery experts, all supported by diligence of our long term proven top law firms, property appraisal advisors and other experts.

Investment team ensures nothing gets overlooked and pricing and investment decisions are based on tailored made and detailed recovery strategies and business plan. Pricing and valuation is data and process (legal and recovery) driven, applying robust methodology and state of the art modelling approaches.

Risk assessment: we know risk is a key concern of sophisticated investors, we study risk profile of each transaction carefully, use simulations to assess tail scenarios, apply stress testing and scenario analysis.

Transaction structure is discussed simultaneously, experts on tax and financial transactions are included and the most suitable deal structuring solution is selected. Transaction execution follows through deal closing.

Performance: day-to-day performance management on deals‘ and funds‘ levels targets to maximise proceeds and returns while addressing risks. We oversee servicers and watch over transactions and assets on behalf of our investors. This includes critical assessment and dialogue with our own servicer as we are arms-length and care about the investor not the servicer. 

Operations

We also assist and advise our clients around managing and administering the funds, accounts and vehicles holding acquired portfolios and assets, provide with tailored performance reports and updates.

The operations team consists of experienced financial controllers and administrators based in Prague and Luxembourg with network across the region delivering:

  • Management of structures and entities
  • Customized reporting
  • Support decision on optimal structure and tax optimal solutions
  • Securitisation via bonds
  • Long term structures maintenance
  • Investment and securitisation vehicles in Czech Republic, Luxembourg, Cyprus and other domiciles
 

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