LX Partners to sell €4.2Bn in NPLs

LX Partners – an investor that delivers risk-adjusted returns to Partners with main exposure in credit (performing and non-performing) and real estate, is to press ahead with one of the biggest Non-Performing Loans deals ever carried out in Portugal.

According to ECO online, LX Partners is in exclusive negotiations with an investor that is not one of the three consortiums that had been selected to present binding proposals: Cerberus, Intrum and Finsolutia; Carval and Whitestar; and the LCM fund.
The deal had been at risk of not going ahead because of the low offers that LX Partners had received from the platform Algebra Capital, which was responsible for the management of the portfolios according to Jornal Económico.
This company had 175 staff and a turnover of €13 million in 2022, up 11% in 2021 having raked in €1.5 million in profits according to data from InformaDB.
The fact that the three investors that had been selected had their own servicers meant that the proposals for Algebra fell short of what LX Partners shareholders had intended.
LX Partners has now decided to advance with the sale of the portfolios of NPLs to another investor.
The portfolios in question are the problematic assets that LX Partners acquired in recent years from the Portuguese banks with a gross value of €4.2Bn, of which €4Bn was in respect of unsecured credit and €200 million of secured credit.
LX Partners, based in Luxembourg and Algebra have not so far made any comments to the media.
Apart from dealing with NPLs, LX Partners also operates in the areas of private equity and real estate.