Algebris launches Algebris NPL Fund III

Algebris is pleased to announce the launch of the Algebris NPL Fund III. This is the third Algebris fund dedicated to investing in Italian non-performing loans from financial institutions. This fund will build on the track record of the two previous NPL funds and capitalise on the market opportunities in this space.

Over the last 5 years, Algebris has become a market leader in the secured non-performing loan space. To date, it has invested in non-performing loans with first lien mortgage guarantees for a gross book value of €3.7 billion across 112 transactions with 37 counterparties, consolidating a market share of around 20%.

Algebris NPL Fund III is a limited partnership incorporated in Luxembourg generally open to institutional investors, with a maximum term of 6 years. The fund is targeting €1 billion in the next 12 months and has approximately €125 million of signed commitments with visibility on further commitments for a total consideration of €500 million from high profile global institutional investors.

Algebris NPL Fund III, like the two preceding Algebris NPL funds, focuses on non-performing loans with first lien mortgage guarantees on commercial and residential real estate assets located in prime locations in Northern and Central Italy.

Algebris NPL Fund III is managed by the Algebris NPL investment team, led by Gabriele Giorgi and Antonella Di Chio, and composed of 6 professionals who are highly experienced in the financial and real estate sectors. The team is supported by Algos, the in-house Special Servicer formed by Algebris in 2019 to support its growing investments in the NPL space.

With over 30-years of legal experience in the NPL space combined with strong Italian real estate industry knowledge, Algos provides for an alignment of interest with investors and full internal integration of investment and recovery teams, along with significant cost saving on servicing and due-diligence fees. All of the Algebris NPL portfolios including NPL I and NPL II are now serviced by Algos and will benefit from the cost savings of this model.

Davide Serra, Founder and CEO of Algebris, states: “Overall we think this asset class has a unique risk-return profile, given the limited downside risk, coupled with continued attractive returns. With the recent integration of the Algos operations we will soon have around 40 professionals wholly dedicated to our NPL business. This will boost our competitiveness in the market and increase returns for investors.”