Mount Street has agreed with Erste Abwicklungsanstalt (EAA) to acquire the management subsidiary EAA Portfolio Advisors (EPA).
At the end of 2009, EAA was created as the asset management company to manage the assets of the former WestLB AG.
EAA was founded as a public law agency under the German Financial Market Stabilisation Fund Act. Its shareholders include the German State of North-Rhine Westphalia and NRW’s savings banks associations. EAA took over the responsibility for the wind-down of WestLB’s portfolio of more than €200bn comprising a diverse range of complex non-performing loans, ABS, leveraged credit, asset finance and structured finance assets.
EPA has managed this portfolio over the past 7 years and has enabled EAA to reduce the outstanding balance to approximately €29bn, remaining ahead of the plan agreed with EAA and its stakeholders.
Mount Street will take over EPA, including its approximately 90 employees at offices in London, Düsseldorf, New York and Madrid, following regulatory approval which is expected in the first half of 2017.
With this acquisition Mount Street adds portfolio management of €29bn of diversified performing and non-performing credits to approximately €26bn of commercial real estate loans and bonds that the company currently manages, bringing the total AUM to over €55bn.
Furthermore, the addition of EPA’s credit portfolio management team to the Mount Street platform allows the company to diversify its product offer beyond its existing activities in loan and bond servicing.