Independent asset manager Algebris Investments has launched Algebris NPL Fund1, a fund investing in non performing loans (NPL) from distressed Italian banks.
The new fund is a Luxembourg-domiciled fund targeting international institutional investors and will invest in NPL or securities of distressed Italian banks, with focus on those guaranteed by underlying real estate assets which in Italy represent roughly 40% of total NPL, about €170bn, Algebris said.
The fund has already posted €370m from institutional investors and family offices, has a target of €400m, four-year duration and annualised return target between 15% and 18%. The final closing is scheduled for the end of April 2015.
The stock selection and analysis process is currently underway and first investments are meant to start shortly, Algebris said. Fare NPL, an asset management firm specialised in NPL, will work as special servicer alongside with Algebris.
Together with the fund launch, Algebris Investments announced the opening of an office in Milan which will be led by Massimiliano Bertolino e Alberto Iori.
Bertolino is the CEO of Fare NPL and has a long-standing experience in NPL and the real estate sector. Iori has also been working in the NPL and real estate sectors for more than a decade, having been at Pirelli RE, Celtic Italy and CBRE Italy before.
Davide Serra (pictured), CEO of Algebris Investments, has hailed the results of the AQR as a “great investment opportunity” that is likely to make of Italy “one of the most dynamic European markets for the NPL space.”