Machine learning and data abstraction group Leverton has announced its first foray into the non-performing loan (NPL) market by joining forces with independent private equity real estate firm 8G Capital Partners.
The partnership will support both buyers and sellers of NPL portfolios and help them save considerable time and cost in conducting due diligence and closing transactions as well as post-acquisition portfolio management.
NPL transactions are highly complex and involve myriads of documents. However, many transactions are still being brought to the market without complete knowledge of what each portfolio entails.
The two companies will work together to mitigate the risks of NPL transaction failures owing to data inadequacies, by combining 8G Capital Partners’ expertise in asset management with Leverton’s proprietary platform’s capability to improve data capturing and structuring efficiencies. The partnership will target businesses in Greece, Cyprus, Ukraine and Turkey in its initial phase.
'When marketing a portfolio for sale, be it NPL or real estate, it’s all about disclosure. Equally, when managing such a portfolio, one needs to have complete and accurate information on their fingertips. There is tremendous value in a clean data tape,' said Tassos Kotzanastassis, founder of 8G Capital Partners.
Speaking about the announcement, Richard Belgrave, global sales director at Leverton said, 'We have been testing the possibility of entering this market and are excited to be able to bring our technology to the loan market. It’s traditionally a complex market where bid-ask spreads can remain unnecessarily wide, owing to the unavailability of quality data. With our market-leading data extraction platform, we can help businesses overcome these market failures.'
