Debitos and Transformation Factory partnering on Non-Performing Loans portfolio transactions in France
Paris, 15th July 2021: Debitos and Transformation Factory are delighted to announce their partnership on Non-Performing Loans portfolio transactions in July 2021. Both companies will seize this opportunity to construct a comprehensive solution for French banks and credit institutions.
Transformation Factory is a French consultancy expert in data management, transformation, and financial and risk quantitative analysis. Debitos is the European specialist of NPL transactions, established in Frankfurt in 2010 by Timur Peters, its current CEO.
Debitos has transacted over 645,000 loans in more than 16 countries. This partnership will provide the 1,300 registered investors access to the French institutions and open the French NPL market to overseas investors, constructing a connection between suppliers and purchasers to a magnitude and reach not yet seen in France.
This alliance emerges at a time when European authorities have urged banks to establish a strategy to handle their NPL stock before binding regulation takes effect across Europe. Amounts at stake are of fundamental importance as the NPL stock in France is projected to be over € 130 Billion, the highest in Europe. The added burden of the Covid-19 crisis has made action all the more urgent. The EBA, the European Commission, and the European Central Bank have set up an agenda to tackle this subject with building an efficient secondary market being one of the largest and most ground-breaking projects launched so far.
Both organizations will leverage their innovative collaborative approach to produce a holistic service from data gathering to execution to pricing and portfolio selection, whilst being fully compliant with the upcoming EBA and European Commission standards. To achieve this goal, Transformation Factory has launched a new practice, Deal Advisory & Quantitative Analysis, that will oversee recruiting sellers, negotiating deals, and executing transactions. They expect to add additional strategic personnel, particularly a senior banker now based in London who will join the firm in the coming months. Debitos is already active in several countries in Europe and will use its extensive expertise to establish a sustainable and innovative solution, useful for both sellers and buyers.
Timur Peters, CEO of Debitos states: “We are happy to explore with Transformation Factory the opportunities of the French market, the biggest NPL stock in Europe today. The French Banks were in the past hesitant to approach the foreign investor market. With our international investor network and the local expertise from Transformation Factory we are convinced to offer them the perfect entry point into this secondary market.” For Abdelfattah Lachguer, CEO of Transformation Factory, this new partnership is the right answer to the needs of the markets: “Economic competition is a battle of creativity and innovation. Our expertise in accompanying financial institutions in such matters, allied with the innovative approach of Debitos will allow us to propose an unparalleled level of expertise in France and the unique set of services for banks to tackle the NPL issue.”
About Transaction Factory
Transformation Factory is a boutique consultancy firm established in Paris that has developed a specific offer on high technicity subjects such as innovation, data and finance. Since 2018, its horizontal structure, agility and reactivity have helped it build C-level relationships with the major French banking groups as well as overseas banks and corporates. Activities now span from regulatory transformation to quantitative finance to technology integration.
Debitos is the leading secondary debt market that enables companies, banks and funds to sell their credit exposures on the market through its open and transparent auction-based online transaction platform. The platform leverages on the digitalization of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since successfully transacted more than 645,000 loans in 16 countries. By now more than 1,300 investors from all over Europe have registered with Debitos.