GI Partners, the trans-Atlantic private equity house, has backed the launch of Elystan Capital Advisers, a Munich-based investment firm targeting mortgage backed assets and the mortgage banking sector in Germany, Austria and Switzerland. According to well-informed sources, GI Partners will provide EUR 100 mln with a view to expanding this figure should further opportunities arise.
GI Partners, the trans-Atlantic private equity house, has backed the launch of Elystan Capital Advisers, a Munich-based investment firm targeting mortgage backed assets and the mortgage banking sector in Germany, Austria and Switzerland. According to well-informed sources, GI Partners will provide EUR 100 mln with a view to expanding this figure should further opportunities arise.
Elystan's founders, Keith Fischer, Robert Grassinger and Ulrich Kastner believe that there is significant pressure on the banking industry to strengthen balance sheets and minimise exposure to certain non-core and non-performing assets. It is expected that this pressure will lead to a number of investment opportunities across the mortgage and real estate sector as financial firms look to reduce their exposure to these non-performing assets through divestment. The firm’s strategy is to acquire these non-performing loan books as well as mortgage-backed securities and real estate portfolios which it plans to consolidate and actively manage to improve performance.
In addition, Elystan has been working with GI Partners since June 2009 to pursue the acquisition of a bank to be used as a platform to expand and grow a mortgage lending business which can fill the gap in credit available to Mittelstand companies.
All the founding directors of Elystan have strong investment experience in German real estate debt and assets and together they have accumulated over 50 years experience in the German market.
GI will provide the funds from its GI Partners Fund III, which closed at $1.9 bn in October 2009. GI Partners has significant experience in the specialist finance area having backed Ladder Capital the US specialty finance company providing comprehensive financing solutions to the commercial real estate industry in October 2008. Ladder Capital originates and invests in a diverse portfolio of real estate-related products, including first mortgage loans, CMBS, mezzanine loans and other special situation investments. Since formation, Ladder Capital has deployed in excess of $1 bn in capital.
Mark Tagliaferri, Managing Director of GI Partners, commented: 'We are delighted to be working with the three principals and backing the Elystan platform. Their strong industry experience combined with their strategic vision of opportunities in the German market make them an ideal partner for GI Partners. We look forward to building Elystan into a significant business in the German mortgage banking sector.'
