Apollo European Principal Finance Fund (Apollo EPF), a fund affiliated with alternative investment manager Apollo Global Management and its subsidiaries, has bought €265m performing and €280m non-performing consumer loans from Citi in Spain.
The acquisition is expected to boost Apollo’s European consumer credit receivables platform is Spain, the US wealth manager said.
The acquired portfolio of loans, which comprises 130,000 accounts, will be managed by Apollo EPF’s proprietary credit card and consumer loan servicing platform Avant EFC.
Upon closing of the acquisition of the Portfolio, Apollo EPF will have acquired nearly €1.9bn of credit card and consumer loan receivables which are managed by Avant’s operating units in Ireland and Spain.
Commenting on the deal, Apollo EPF partner Andrés Rubio said the transaction underscores Apollo’s ability to leverage its integrated platform in pursuit of attractive investment opportunities arising out of the restructuring of the European banking industry.
"Apollo EPF is committed to enhancing and building our European business, including the acquisition of large portfolios of consumer receivables and performing and non-performing residential and commercial mortgages," Rubio added.
The deal follows a series of acquisitions by Apollo EPF that include Bank of America’s Spanish consumer credit card portfolio and operations in August 2011 and Bank of America’s Irish consumer credit card unit in May 2012.
Based in Madrid, Avant was acquired by Apollo EPF in 2011 and currently has nearly 300 employees in Spain and is chartered by the Bank of Spain as a nonbank financial services company.
As of 30 June 2012, Apollo had nearly $105bn assets under management, invested in private equity, credit-oriented capital markets and real estate funds.