UK-based asset manager Algebris Investments is planning to open a new office in Milan and also launched a new fund investing in nonperforming loans (NPL).
The planned Milan office will be led by Massimiliano Bertolino e Alberto Iori, who is the founder and CEO of Make NPL and also worked as head of NPL Pirelli RE from 2002 to 2009. Previously, he worked with Celtic Italy and CBRE Italy.
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Known as Algebris NPL Fund1, the Luxembourg-domiciled fund aims to target international institutional investors and will invest in NPL or securities of distressed Italian banks.
The fund will particularly focus on Italian banks that are guaranteed by underlying real estate assets which in Italy represent roughly 40% of total NPL, about 170bn.
The NPL Algebris Fund 1, which has a target of 400m, already raised 370 million from institutional investors and family offices. The final closing is planned to end in April 2015.
The fund has duration of four years with an annualized return target between 15% and 18% between 15% and 18%.
Fare NPL, an asset management firm will act as a special servicer alongside with Algebris.
