Veld Capital and EOS Group acquire €364m French consumer loan portfolio
European specialist private credit investor Veld Capital and EOS Group have purchased a portfolio of regulated French consumer loans from BNP Paribas Personal Finance for €364m (£311m).
The portfolio contains more than 125,000 small balance French consumer loans with an average balance of less than €3,000.
The portfolio is considered to have high payment predictability and stability due to its stable cash flow from amortising loans with affordable monthly payments and a weighted average seasoning of more than two years.
The assets were purchased outright by a securitisation vehicle funded jointly by Veld and EOS, with the servicing being migrated to EOS for management.
Veld and EOS have previously co-invested together in several European jurisdictions and asset types.
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EOS France, a subsidiary of the international EOS Group, specialises in the purchase and servicing of receivables portfolios and has more than 30 years of experience within the French market.
The portfolio was acquired from BNP Paribas Personal Finance, a wholly owned subsidiary of the BNP Paribas Group, and a major consumer finance player in both France and Europe, offering a wide range of consumer credit products.
Leveraging extensive relationships and product expertise developed as a solutions provider to European banks over its 14-year history, Veld (formerly AnaCap Credit) primarily targets granular, amortising and asset-backed investment opportunities, benefiting from data-rich underwriting where it can utilise internal expertise as well as comparable proprietary data.
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Approximately 80 per cent of Veld’s investments since inception have been with banks and financial institutions as counterparties, often as part of repeat transactions, providing credibility and transaction certainty.
“We are very happy to have been able to finalise, with the support of Veld, the largest sale of consumer credit receivables ever carried out in France,” said EOS France chief executive Nathalie Lameyre.
“This success is the result of many years of partnership and trust between BNP Paribas Personal Finance and EOS, in Europe and particularly in France.”
Veld Capital partner Konstantin Karchinov added: “It has been a pleasure to be involved in this transaction, the fund’s first investment in French consumer loans. Both the French market and our strong relationship with EOS are key sources of high potential opportunities in 2024 as Veld launches its fifth flagship credit opportunities fund.”
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