Reviva Capital has achieved EUR1.5 billion of assets under management in less than one year of trading. These assets involve over 400 individual loan contracts, made up of both corporate loans to professional real estate investors (75%) and loans to individuals (25%).
Reviva Capital’s assets are primarily made up of non core or distressed exposures held by large European banks and financial institutions. Over EUR350 million of client loan exposures have now been taken under direct shareholder control.
Reviva Capital’s active approach to work out management has resulted in a dramatic charge in the ratio of performing to non performing loans. Over 65% of Reviva Capital’s non core and distressed assets are now performing, which has significantly improved the recovery expectations of their clients.
This success has allowed Reviva Capital to take on 25 staff with varied backgrounds including debt specialists, asset managers, investment banking professionals, and legal and accounting staff; all with extensive experience in recovery and workout management throughout European markets.
Reviva Capital was incorporated after a successful restructuring and spin-off from Glitnir Bank Luxembourg in April 2010 and is jointly owned by the management and Glitnir Luxembourg. The company is headquartered in Luxemburg and has created a network through Europe, including banks and other financial institutions, institutional and private investors, property managers and developers, as well as law-firms and specialized consultants.
Ari Danielsson, Managing Director of Reviva Capital, says: “Our active and ‘hands on’ approach is proving very successful with financial institutions, who are under pressure to improve the performance of their non core loan books. By using a pre-emptive and cooperative approach towards distressed borrowers and co-lenders, we are able to secure direct control and involvement through voluntary hand-over of shareholding. This avoids costly and time consuming legal processes.
“Our integrated approach allows us to focus on asset, corporate and capital levels at the same time. This way, coherent recovery strategies can be put in place and the restructuring plans recalibrated to match in terms of timing and expected recovery levels.
“Through successful restructuring efforts, over EUR350 million of our clients’ loan exposures have been taken under direct shareholder control, substantially improving recovery expectations and at the same time removing various uncertainties and risk factors.”
