Sciens Alternative Investments and PVE Capital announced the launch of the PVE European Distressed Fund I, a closed ended fund that has invested in a portfolio of Italian Non-Performing Loans (NPLs) with a gross book value of €408m, primarily composed of secured loans backed by Italian real estate.
The fund closed earlier this year after reaching full capacity.
PVE Capital is the originator of this deal, as well as being the asset manager of the NPL portfolio. PVE Capital is a European credit manager which manages nearly $1bn across six strategies.
Sciens Alternative Investments is part of the Sciens Capital Management Group whose global assets under management or advisory includes private equity, real assets, funds of hedge funds and managed account services.
The fund is an Irish unit trust which has allowed a broad array of institutional investors to gain exposure to this investment opportunity. Sciens is the fund manager for the PVE European Distressed Fund I.
Sciens founder and Chief Executive Officer John Rigas commented: “The Italian NPL market is of particular interest in 2015 as lenders are forced to restructure their balance sheets, with private investors offering the best solution in inefficient jurisdictions such as those found in southern Europe. Of all the NPL portfolios we have seen, what attracted us most about this particular transaction was its relatively low duration and the high quality of the collateral.”
Gennaro Pucci, Chief Investment Officer and founder of PVE Capital added, “Our new portfolio is made up of high quality assets, and we are confident that this will generate attractive above average returns for our investors.”
This is the second recent venture between London and New York based Sciens Alternative Investments and London based PVE Capital, adding to an existing European structured credit managed account, SGAS Pearl Vega that was launched in September 2014 on Sciens’ independent Managed Account Platform and follows the PVE Special Situations Credit Strategy.