KKR buys Italian credit servicing platform Sistemia

As part of the deal, the company’s management team will continue to lead the business. Financial detail surrounding the transaction remain undisclosed.

The deal highlights the rising interest from private equity fund managers for the Italian non-performing loans (NPL) servicing sector. KKR’s involvement in the NPL market started with the launch of dedicated investment platform Pillarstone in 2015.

Additionally, in March 2017 US asset management firm Varde Partners bought a 33% stake in Guber, a Brescia-based NPL services provider, in exchange for a reported €47m.

According to PwC, the Italian market remains one of the largest in Europe in terms of gross volume of NPL: as of June 2016, PwC estimated the total of non-performing exposure in Italy to €331bn.

Furthermore, the European Central Bank indicated in its guidance to banks on NPL that the maturity and capability of the servicing industry is a critical factor in the resolution of the NPL challenge.

Company
Founded in 2004, Sistemia provides management services for secured and unsecured credits, including non-performing loans, with particular focus on real estate. Its range of services include portfolio due diligence, loan analysis, pricing assistance, remarketing of distressed assets, auction optimisation and debt collection. Currently, the company claims €4.6bn of assets under management, of which two thirds are secured exposure.

The business is headquartered in Rome and employs 740 people.

People
KKR – Dan Pietrzak (managing director).
Sistemia – Guido Fienga (chairperson); Paolo Sgritta (managing director).

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• Topics
• Buyouts
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• Southern Europe
• Italy
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