MIPIM: Reviva Capital hits EUR 1.5b in AUM

Reviva Capital, the European non-core and distressed asset manager born out of the spin-off from Glitnir Bank, has achieved EUR 1.5 bn of assets under management in less than one year of trading, the company announced during the MIPIM trade fair in Cannes. These assets involve over 400 individual loan contracts, made up of both corporate loans to professional real estate investors (75%) and loans to individuals (25%).

Reviva Capital's assets are primarily made up of non-core or distressed exposures held by large European banks and financial institutions. Over EUR 350 mln of client loan exposures have now been taken under direct shareholder control.

Reviva Capital's active approach to work-out management has resulted in a dramatic charge in the ratio of performing to non performing loans, the company said. Over 65% of its non-core and distressed assets are now performing, which has significantly improved the recovery expectations of their clients.

The company, which was created in April 2010 from the restructuring and spin-off from Glitnir Bank Luxembourg, has taken on 25 staff with varied backgrounds including debt specialists, asset managers, investment banking professionals, and legal and accounting staff; all with extensive experience in recovery and workout management throughout European markets. It is jointly owned by the management and Glitnir Luxembourg, and is headquartered in Luxembourg.

'Our active and "hands on" approach is proving very successful with financial institutions, who are under pressure to improve the performance of their non core loan books,' said Ari Danielsson, managing director of Reviva Capital. 'By using a pre-emptive and cooperative approach towards distressed borrowers and co-lenders, we are able to secure direct control and involvement through voluntary hand-over of shareholding. This avoids costly and time consuming legal processes.'