Loan Portfolio Acquisition
The FTI Consulting Corporate Finance team provides support to financial investors who are considering acquiring loss portfolios. Typically bank loan portfolios are being sold by banks that are looking to reduce the size of their balance sheet or reduce their risk in certain sectors or geographies. The size of the loan portfolios usually range from 20-50 leveraged/senior loan exposures to 1000+ non-performing loans of residential/non-performing loans.
Our team is able to deploy quickly to perform:
- Individual loan-by-loan assessment on smaller portfolios performing a valuation, exit analysis post ownership, brief due diligence and likely returns
- Detailed loan pricing models for large portfolios including development of key assumptions (discount rates, probability of defaults, loss curves etc), review on NPL, position versus market, data cleansing, model development and pricing assessment
- Assessment of capital impacts for banking clients from completing the acquisition of the portfolio under a range of scenarios and regulatory regimes such as Core/Capital and Basel III
- Provide the resources in the case of large portfolios to review individual credit files of the seller to assess the impact of material credits on the valuation exercise