The process of acquiring debt portfolios
BEST TFI is involved in a comprehensive handling of debt portfolio acquisitions on behalf and for the account of the securitisation funds that it manages: starting from the search for investment opportunities, through the valuation of the debt portfolio and ending with the closing and settlement of the transaction.
The transactional process in debt portfolio acquisition comprises numerous stages such as:
- searching for potential debt portfolios;
- testing the portfolio quality (due diligence);
- negotiating terms of acquisition agreements;
- raising capital for the transaction (issuance of investment certificates and bonds);
- settlement of the transaction;
- post-transactional support.
Financing the purchase of debt portfolios
In addition to the above-described securitisation process, securitisation funds can raise capital for the purchase of debt portfolios in the following ways:
The source for transaction financing is cash from the investor who acquires a securitisation fund's investment certificates. Direct investors in securitisation funds include, apart from debt servicers such as BEST S.A., foreign investment banks, private equity funds and individuals.
In this model, an equity investor acquires funds for the purchase of investment certificates in a securitisation fund from the market, i.e. by issuing their own bonds. Such bonds are usually secured by investment fund certificates.