Information related to the coronavirus (COVID-19) Read more

Our offering

Solid experience, knowledge of the regulatory environment and presence in eleven European markets enable Hoist Finance to offer banks and financial institutions extensive support with debt restructuring solutions.

A bank’s customers must be handled smoothly and with great care following the transfer of a portfolio to Hoist Finance. With strict procedures and processes, we can ensure fair treatment of customers in compliance with the selling bank’s compliance criteria. The best results are always achieved when the transfer of customers is planned well in advance. 

Some of the key components of Hoist Finance’s offering are:  

  • Good understanding of the regulated banking environment. 
  • Flexible and customized service offering on the ground in major European markets. 
  • In-house customer relations, which safeguards superior understanding of the customers’ situation as well as good operational control including risk management and compliance.  
  • More than 25 years of experience in debt restructuring solutions. 

Hoist Finance is a full-service supplier, capable of servicing various stages of the credit risk cycle. Most portfolios acquired by Hoist Finance have historically been tertiary loans, which have been in default for 2-5 years. In more recent years, fresher debt has been acquired as debt markets have matured.

Our loan acquisition strategy

Bank-originated loans  

  • High quality origination with less risky repayment profile.  
  • Larger ticket size. 
  • Long-tail stable cash flows. 

Asset-class flexibility  

  • Flexibility to buy all types of financial institution-originated debt.  
  • Increased proportion of performing loans and secured NPL:s in recent years. 

Diversified geographic profile  

  • Reduction of single-market exposure from a risk and origination perspective.  
  • A more even flow of investment opportunities. 
  • Strengthened value proposition to banks and financial institutions.

Fair pricing 

Hoist Finance can evaluate a portfolio and give a fair offer based on our data warehouse that includes detailed data on collection performance and cash flow from acquisitions dating from the year 2000 and onwards. A guiding principle has always been, and still is, to be prudent when bidding for debt portfolios. With Hoist Finance’s tools for examining and analysing potential acquisitions, predictions can be made on a 15-year horizon of future cash flows and debt recovery costs. 

Solution

Definition 

Constrains and specifications 

Present Market status

Spot transaction/Direct sale

Direct sale of a precisely identified portfolio. 
Most of Hoist Finance’s portfolios have been
acquired through spot transactions

  • Limited capitalization for future deals

Mature   

Forward flow 

A pre-determined volume (fixed or range) of loans is acquired at a pre-determined price.  

  • Implementation of a durable relation and engaging relation for both parties  

Relatively mature for several institutions/markets

Servicing  

Operational management on behalf of an institution.

  • Implementation of durable and engaging relation for both parties.
  • No deconsolidation for the seller.
    With or without engagement on the recovery performance

Mature, Potential additional services may be added

Structural sale

Direct sale of a precisely identified portfolio. This option does however include a potential takeover personnel and/or systems.

• High capital use, could limit future transactions.
• Ensure preserved know-how and infrastructure to secure transaction.

Mature, but less common

SPV and securitization

Sale of portfolio to an SPV with potential securitization structure:

  • SPV detained by potentially multiple investors
  • Mutualization of different portfolios originating from different institutions
  • Sale of securitization share to different potential investors including the sellers
  • Dedicated to a seller or not (mutualization of debts from multiple sources), possible share ownership of the SPV
  • Possible securitization of the SPV debt with offering to multiple investors

Average maturity

Significant potential

We use cookies on our site to improve your overall experience.

Click here to learn more I accept the use of Google Analytics