Sector developments and company hires

illimity inks NPL ABS duo
illimity Bank has finalised two non-performing loan transactions, including the sale to Phinance Partners and SOREC involving a €129m GBV portfolio related to around 4,500 debtors. The portfolio consists of unsecured loans related to granular mainly retail exposures that were acquired by illimity during 2019 as part of an investment transaction in a large portfolio on the primary market.

Phinance Partners and SOREC acted respectively as arranger and special servicer, and jointly as advisors of LEX, the securitisation vehicle that purchased the loans from illimity. The notes issued by LEX were purchased by institutional and professional investors.

The second transaction involves the issuance of notes by a newly established securitisation vehicle constituted for the purchase of distressed credits with a gross nominal value of €31m. The portfolio comprises NPLs and unlikely-to-pay loans, granted to two companies belonging to the same economic group and secured by properties with various intended uses - including accommodation, commercial and office - located in Sicily.

illimity underwrote the senior notes issued by the vehicle, while a professional investor underwrote the junior notes.

In other news…

EMEA
Luxembourg-based MC Invest has added Daniel Clarke and Tom Sterling as mds, as well as John Aldershot, Jamie Stratton and Peter Northwood as directors in its MBS and rates division. The new recruits will focus on institutional account coverage in mortgage and securitised product sales.

Clarke most recently served as a director of institutional sales at AD Securities and prior to that was the director of structured product sales at Credit Suisse. He previously worked as an associate in the taxable fixed income department at Prudential Securities and as an associate at CIBC Oppenheimer.

Sterling most recently served as an svp of institutional sales at Durrell Partners and prior to that was an associate in the securitised products sales division at JPMorgan London. He was previously an avp of regional institutional sales - mortgages at UBS, avp of taxable fixed income sales at ADC Group and an analyst in the investment management asset group at Prudential Financial.

GSE PSPAs amended
The FHFA and the US Treasury have amended the GSE preferred stock purchase agreements (PSPAs) to allow Fannie Mae and Freddie Mac to continue to retain earnings until they satisfy the requirements of the 2020 Enterprise capital rule. Additionally, Treasury has agreed that the enterprises can raise private capital and exit conservatorship once certain conditions are met. To facilitate enterprise equity offerings, the department has committed to work to restructure its investment in each GSE. ​

Minority interest acquired
TIG Advisors has acquired a minority revenue share interest in Arkkan Capital, a Hong Kong-based alternative asset manager with approximately US$1bn of assets under management, from a fund managed by a Blackstone advisor. The fund, which seeded the firm, remains an investor in Arkkan’s fund.

Founded in 2013 by Jason Brown, Arkkan focuses on credit and special situations investments across Asia Pacific. Brown will continue to lead the firm as cio and retain control over Arkkan’s day-to-day operations and investment processes. As a growth-oriented partner, TIG will work collaboratively with Arkkan, focusing primarily on marketing and business development.

North America
Elementum Advisors has hired Todor Todorov as vp, business development & investor relations. Based in New York, he will be responsible for the firm’s management of client relationships and investor education, and will also focus on product and strategy development. Todorov joins Elementum from Willis Towers Watson, where he was a director in the investment manager research team and led ILS strategies research.