Fondaco Italian Loans Portfolio Fund is the fund dedicated to investments in loan portfolios, both those secured by residential and commercial real estate, and unsecured loans, developed from Fondaco’s partnership with CarVal Investors, an operator specialised in the sector, with a track record of more than 30 years in the asset class, which acts as Investment Advisor for this initiative.
The strategy is aimed at seizing the unique structural opportunity arising from the current specific economic context, in which European banks, and Italian banks in particular, urgently need to divest loan portfolios and in which, at the same time, recent legal reforms and the growing presence of specialised buyers are supporting demand.
The fund’s approach is to generate returns thanks to the rigorous selection of opportunities, with a strong focus on risk protection, without penalising the returns expected from transactions. Another important lever for the creation of value is the use of specialised servicers, chosen on a case-by-case basis according to the characteristics of each individual portfolio, to ensure active management of the positions.
Fondaco Italian Loans Portfolio Fund is a closed-end fund regulated by the laws of Luxembourg, which has reached commitments of €203m, all from leading Italian institutional investors. The fund’s overall duration is six years (with the possibility of extension for two consecutive 12-month periods) and it distributed its first income 18 months after the start of investment activity, ahead of expectations.