In the current environment, the management of impaired assets represents a challenge to the financial system and an opportunity for different market participants. Afi advises financial institutions on the management and sale of impaired assets, as well as potential investors who may be interested in identifying and defining portfolios for purchase or in devising collaboration schemes with financial institutions. Afi's experience in advising financial institutions, real estate companies and investors of different types puts it in a position to help to devise different alternatives for the management of these assets.
In this respect, we actively maintain contacts with numerous investors, interested in different segments of the stressed assets market: retail portfolios, credits to insolvent companies, real estate, … Moreover, whenever we are asked to help define capital strategies for financial institutions, we always analyse the possibilities for disinvestment and alternatives for the management of impaired assets.
Our collaboration can focus on four separate and complementary areas, which can be developed together or separately, depending on the needs of each institution and each investor:
- Identification of potential opportunities, by simulating the impact of asset impairment, whether in loan books, shareholdings or recovered fixed assets; support in the search for counterparties for sellers and investors.
- Consultancy or the provision of services to strengthen the management of impaired assets, with respect to strategy, organisation, implementation and the creation of internal capabilities, both for the entities holding the assets and for potential buyers who may require the servicing of portfolios or the management of real estate acquired.
- Valuation of unique assets or portfolios in accordance with their characteristics and the state of the market.
- Advice on the design of instruments and transactions to optimize the impact on both the institution selling - delinquency, liquidity, solvency -, and on the party acquiring, from the prior analysis and simulation through to the validation or negotiation with supervisors and counterparties.