Contribution Funds
The UTP Italia Fund is a closed-end, multi-compartment, reserved alternative investment fund dedicated to investing in Unlikely To Pay (UTP) mortgage-backed and unsecured loans contributed (or acquired) by banks and/or servicers.
UTP Italia serves as a “systemic” alternative available to banks to facilitate the deleveraging and derecognition process while promoting a proactive, back-to-bonis-oriented portfolio management approach.
The Fund consists of a “Credit” compartment, where the subscribing entities are the contributing banks, and a “New Finance” compartment, subscribed in cash by investors interested in financing companies undergoing restructuring processes.
This multi-compartment structure:
- Enables debtors to access new financing and expertise to relaunch their businesses;
- Facilitates the derecognition process for originators at competitive prices;
- Engages a strategic partner to create a stable operational platform;
- Allows for more efficient management of corporate debtors experiencing temporary financial difficulties through various operational and financial levers (e.g., debt restructuring, hybrid instruments, new financing) that the seller(s) might be unable to implement due to a more restrictive regulatory framework.
The product introduces innovative features to the Italian market, with an investment focus on large portfolios of granular UTP loans, both secured and unsecured. The investment structure leverages Intrum’s expertise as a Special Servicer through the synergistic use of the Fund (Sagitta) and the securitization of receivables via Zenith Service.
UTP Restructuring Corporate
UTP Restructuring, is a closed-end, reserved alternative investment fund, composed of the “Loans Sector” and the “New Finance Sector”.
The Fund will be established through a single name contribution by major Italian banks of credits of any nature – “Stage 2”, “Probable defaults” or “Past due” – versus Italian mid-large corporates in selected industries on the basis of Arrow Global’s track-record. The fund may also support restructuring processes by providing direct financing to companies.
The aim of the fund is to maximise the recovery rate of credits in the medium-long term by promoting and supporting restructuring and relaunching operations of companies, also through the provision of new finance for the companies invested in.
UTP Restructuring comes from Sagitta’s positive experience in managing funds dedicated to NPE credits, in which major Italian banks and international investors have participated.