Since 2013, Cerberus has bought 20 European loan portfolios to become the biggest buyer of non-performing loans in Europe. Lone Star and Blackstone have also been active, buying loans worth €20bn and €10bn respectively in the last 2.5 years. Each of these companies would have paid a fraction of the face value of the loans as bad banks eagerly sell them to repair their balance sheets.
There are now several major players in the loan sales market, but Cerberus are now the most active player in Ireland and the UK. Last week, Cerberus bought £550m worth of RBS loans for 41% of their value, and in December, they acquired £4.8bn in Irish RBS loans for 23% or their value.Read More