Pimco invests funds into NPL servicer

The servicer, focussed on the management of NPLs and ‘unlikely to pay’ (UTP) portfolios, has announced an investment of funds in PAM managed by institutional investors Pimco.

Following the deal Steve Lennon, founder and chief information officer of PAM, together with the other founding partners, will hold 40 percent of the corporate capital.

Private equity firm AnaCap Financial Europe investment entities already holds a 30 percent stake, therefore the new investors Pimco will hold the remaining 30 percent stake.

In continuation of the existing strategy, PAM will continue to operate as an independent platform of special servicing with the current management team staying on.

AnaCap said the institutional investors will continue to support PAM in its development plan in the Italian market - in relation to the management of NPL and UTP portfolios. The investors will also support PAM through the implementation of ancillary functions, such as the management and execution of ‘reoco’ strategies.

Reoco are real estate companies that are created and held by investors, participating at auction with the aim to increase competitive tension between firms interested in purchasing the real estate properties.

Lennon said: “The presence of our institutional partners will support PAM in the acceleration and optimisation of our growth plan, and extending the panel of clients across banks and international investors.”

As a servicer, PAM currently has around £8bn of gross book value under management across 11 NPL/UTP portfolios. In addition, over the last two years the company has conducted further diligence for NPL/UTP acquisitions in excess of around £17bn of gross book value, on behalf of international investors.