• New Loan Servicing Platform from PwC Austria, Silverton and 720° brings distressed debt investors and distressed loan portfolios together
• Major potential: According to estimates, over 40 bn Euro of non-performing loans (NPL) are dormant in the southeast European target markets
• Platform offers international customer support, including bespoke reporting
Vienna, 18 July 2018 – Together with the Silverton Group and 720° Restructuring & Advisory, PwC Austria is bringing together international investors and banks wishing to outsource their non-performing loan (NPL) and non-core loan commitments. The three consultancy firms are setting up a long-term cooperation platform, providing tailor-made services for non-performing loans.
„For the first time, loan commitments in Eastern Europe can be managed across national boundaries and with consistently high quality“, says Bernhard Engel, Partner and Leader Financial Services at PwC Austria. „PwC brings up-to-date expertise in processes, compliance and data management, while Silverton and 720° have local expertise and lengthy experience in restructuring and workout approaches to complex credit exposures“, Engel explains. Jascha Hofferbert, Managing Partner of Silverton, comments: „The cooperation between PwC, 720° and Silverton offers banks and investors all the advantages of a global consulting firm as a central point of contact, together with our special expertise in credit servicing and our local presence in the countries concerned.“
The special feature of this offer is the consistent cross-national customer service, including individual reporting and the taking into account all the different compliance regulations in the various legislations.
Loan-Servicing platform meets major demand in the NPL market
The new loan servicing offer is therefore aimed at tapping the great potential that is currently dormant in the NPL market. According to calculations in a study by Strategy&, PwC’s strategy consultants, in November 2017, there are bad loans amounting to a trillion Euro in Europe. These could have considerable consequences for the economy, the continuing structural changes and the essential digitisation, which would also influence the relative competitiveness of the EU countries in comparison with China and the USA. The study stresses the importance of expediting and speedily implementing the necessary actions to reduce them. This will be facilitated by the new cooperation platform.
Strong network coupled with local knowledge and in-depth expertise
PwC Austria brings to the cooperation its remarkable track record in NPL transactions in south-east Europe, with a total volume of more than six billion Euro over the past three years, together with its strong network in these countries.
The Silverton Group’s services include the investment and asset management of commercial real estate and loans secured on real estate, advice on transactions and settlement in the areas of special situations, distressed debt and real estate, as well as risk advice and banking advice.
720° Restructuring & Advisory supplements the cooperation with a team of experts with a strong banking background, specialising in the management of non-performing loans and the support of NPL transactions.
The core team in Vienna, which works together with a network of colleagues in south-eastern Europe, currently manages a property-secured NPL portfolio with a volume in double-digit millions.