UTP Italia is an innovative fund that combines the instrument of securitization with a multi-sector Alternative Investment Fund reserved to professional investors, specialized in “granular” Unlikely to Pay (“UTP”) credits (deriving mainly from mortgages and loans disbursed to SMEs and households).
UTP Italia positions itself as a “systemic” alternative available to banks to facilitate the deleveraging and derecognition process, and to promote proactive portfolio management oriented towards a back to bonis approach.
The product has innovative features for the Italian market, with an investment focus on portfolios of granular UTP loans, both guaranteed and unsecured. The investment structure can count on Intrum’s specific skills as a credit servicer through the synergistic use of the Fund (Sagitta) and the credit securitization tool (Zenith Service). The UTP Italia Fund has also a direct lending sector, the capital of which will always be raised from institutional investors, with the aim of disbursing loans in support of debtor companies.
SGT ACO Direct Lending (Italy) Fund is a credit FIA (Fund of Alternative Investments) reserved for institutional investors.
The fund’s strategy, which has raised a capital of 100 million euros, is to support companies facing temporary financial difficulties during debt restructuring or recovery procedures, including bankruptcies, through the provision of New Finance in the form of direct financing.
The new finance provided can be utilized by debtor companies for repaying creditors who do not adhere to the recovery/restructuring plan, as well as for financing investments and/or working capital. All these applications aim to preserve and revitalize the company’s operations, making it a valuable source, particularly during a period of strong credit crunch, to unlock value from companies experiencing temporary financial crises.
The Fund started operations in March 2021. Exclusive advisor of the Fund is Europa Investimenti, which has a consolidated know-how and track-record of investment in the distressed assets sector.
The Fund has a multi-fund and multi-asset structure therefore it has a wide flexibility of investment in credits (of any nature), real estate, financial instruments, securitisations, as well as the possibility of intervening in the area of debt restructuring operations, pre-bankruptcy composition agreements and bankruptcies and in the context of special situations.
The investment strategy is aimed at obtaining a net return for investors of 13% (IRR target) in a total period of 8 years, of which the first three dedicated to investments and the following ones (max 5) to the realization of assets.