Italy NPE Market: Fondo Keystone, new Multi-Originator Acquisition Exceeding €200 Million in GBV

Italian Kryalos SGR, with managed assets of €12.5 billion, has announced a significant new operation involving UTP portoflios through its Keystone Fund, dedicated to institutional investors for the management and enhancement of credits at risk of insolvency, bringing with over €530 million in GBV.

This new acquisition, which involves portofolios of debts of various sizes with SMEs borrowers, is in line with the continuity of previous initiatives of the fund, the latest of which was concluded in September 2023. With a gross nominal value (GBV) exceeding €200 million, this operation represents the largest acquisition by the fund , Among the new banks involved are Mediocredito Centrale – Banca del Mezzogiorno, BDM Banca, Cassa di Risparmio di Orvieto, Banca di Imola, and Cassa di Ravenna; furthermore, Banco di Desio e della Brianza, Crédit Agricole Italia, and Banca Popolare di Sondrio have also increased their involvement.

The fund’s structure has been designed to facilitate future acquisitions, on which Kryalos SGR is actively working with the strategic and operational support of EY’s legal and tax consultancy, which also includes a significant pipeline involving new financial institutions.

“We are extremely pleased with the completion of this transaction. With the Keystone Fund, Kryalos SGR demonstrates its expertise in enhancing UTP and NPL credits, showing efficiency and flexibility in managing complex operations. These acquisitions testify to the fund’s solidity, expanding both in terms of credit portfolio and involvement of partner banks. With the support of EY, which has played a key role in the acquisition and management of credits from previous acquisitions and from this one concluded today, we aim for further investments in the UTP market, also making our consolidated expertise in the real estate sector available to investors,” commented Paolo Bottelli, CEO of Kryalos SGR.

“We are very satisfied with the results we are achieving day by day in collaboration with Kryalos SGR. This significant contribution to the Keystone Fund is the best demonstration of the trust that the banks already involved place in us for the work carried out in the acquisition phase and subsequent management of credits, in close contact with debtor companies, which in turn has allowed us to gain the trust of the new institutions entering the Fund today. The long-term goal is to continue operating in the credit market in a complex macroeconomic scenario to support the banking system and businesses,” said Stefania Radoccia, Managing Partner of EY Tax & Law.

Regarding the legal aspects related to the operations, Kryalos SGR was assisted by Molinari Agostinelli Studio Legale, while Bird & Bird provided consultancy to the SGR on regulatory aspects.

The banks were assisted by Giovanardi Studio Legale for one of the operations and by Studio Legale Chiomenti for the other. The evaluation of credits was entrusted to Rina Prime Value Services.

Roberto Sergio

Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.

Credit Village is a leading company in the field of specialized publishing and event organization for the credit management industry and in all issues and aspects related to the NPE market, including ESG , M&A, Real Estate etc. Credit Village has been the first company in Italy to bring the culture of the credit management industry to the press, events and online, creating the largest community in the sector around itself.