At the beginning of spring 2019, APS successfully entered Ukrainian market as a renowned NPL portfolio servicer. The goal is to develop all of firm’s business lines including recovery, investments, valuations and, in the future, real estate.
With an office in Kyiv, the initial target is to service portfolios of secured corporate NPLs and potentially expand into mortgages and other types of receivables.“With ethical codes following international standards and transparency, the entity will serve as an international platform for our partners and investors,” says Martin Machoň, CEO and owner of the APS.
APS entered into cooperation with Avistar in a pilot joint venture project – the Gefest Group that will focus on retail, mainly mortgage NPLs. The joint venture aims to combine the outstanding global expertise of APS with the local knowledge of Avistar’s investment and servicing teams.“We see great potential at the NPL Ukrainian market, not only in the area of acquisitions, but also in tailor made solutions as JV´s and long terms servicing projects bringing added value for the banks,” commented Zuzana Burmakinová, the Interim Director of APS Ukraine.
The Gefest Group embraces the leadership of servicing infrastructure with modern IT system built upon EU collection standards; investment capital, provided jointly by APS and Avistar and a long-term investment view on Ukraine.
- UA NPL market facts
- NPL on the balance sheets of Ukrainian banks — $ 22 bn
- As of 01.06.2019 corporate sector owes to Ukrainian banks EUR 31 bn ($34 bn), 55% of which is non-performing ($19 bn). 52% of NPL corporate loans – loans owed by state owed banks (excluding Privat Bank). Retail sector owes to Ukrainian banks EUR 7 bn ($7.8 bn), 41% is NPL ($3.2 bn).
- NPL under management of DGF — $ 14 bn
- 96 Ukrainian banks declared insolvent during period 2014-2018;
- DGF manages EUR 16 bn ($18 bn) of 82 insolvent banks, 84% — EUR 14 bn ($15 bn) of which are loans, $14 bn – are NPL loans;
Avistar is a key market player in NPLs in Ukraine, both in corporate and retail (mortgage) segments. Avistar was founded in 2010 by former executives of large international investment banks operating in Ukraine. The business grew into an integrated investment firm, which focuses on NPLs and alternative investments, with more than $30m of capital to be deployed into NPLs in 2019. Avistar also targets other CEE markets. The firm possesses its own legal servicing team, which manages and coordinates debt recovery process.
APS is active in the field of investments, management and recovery of debt portfolios and real estate in south and southeastern Europe. APS provides comprehensive services in distressed and performing loan portfolios, investment advisory, and recovery management and ensures asset management. Involving more than 800 professionals, it provides services in 16 European countries. The group owned by Martin Machoň is currently managing portfolios with the nominal value exceeding EUR 8.8 billion.