Bain Capital Credit Acquires a Portfolio of 103 Repossessed Assets in Italy

Bain Capital Credit’s special situations strategy became “Bain Capital Special Situations” in Fall 2022.

LONDON, December 21, 2017 – Bain Capital Credit, LP, (“Bain Capital Credit”) and Castello SGR S.p.A. (“Castello”), announced today that they have agreed to acquire a portfolio of 103 residential, industrial and commercial real estate assets, named Project Hemera, from Intesa Sanpaolo S.p.A. (“Intesa”).

The portfolio comprises assets repossessed from terminated leasing or loan agreements and owned by Intesa through its subsidiaries Intesa Sanpaolo Provis S.p.A., Intesa Sanpaolo RE.O.CO. S.p.A. and Mediocredito Italiano S.p.A. 

Project Hemera is the fifth portfolio acquired by Bain Capital Credit in Italy in 2017, with a total of c. Euro 2.0bn of assets under management across non-performing loans, leases and real estate assets.  

“We are excited to expand our presence in the Italian real estate market and to have assisted one of the largest Italian banks in its deleveraging,” said Alon Avner, Managing Director and Head of Bain Capital Credit’s European business. “We believe the upcoming recovery of the Italian economy presents more opportunities.” 

“This transaction demonstrates our commitment to the Italian market, which we continue to consider one of the most attractive for NPL and distressed opportunities,” said Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European Non-Performing Loan & Real Estate business. “In 2017, we have reinforced our presence in the country and are increasingly active. We will keep seizing opportunities coming to market, supporting the deleveraging effort of the Italian financial system.” 

Bain Capital Credit owned Aquileia Capital Services (ACS) supported Bain Capital Credit and Castello during the entire process and will provide asset management for the assets. ACS has consolidated its role as a leading platform for the analysis and management of real estate assets and distressed and sub-performing loans. 

“It is exciting for Bain Capital and ACS to develop the capability of the Italian platform” said Brad Palmer, Managing Director and Head of European Portfolio Operations at Bain Capital Credit and Chairman of ACS.

In addition to ACS, Bain Capital Credit and Castello were advised by Etna Advisors in the underwriting of the portfolio. Avalon Consulting and Tecnocasa Advisory Group acted as real estate valuation providers; DLA Piper, PwC and Kirkland & Ellis provided legal and tax counsel.

About Bain Capital CreditBain Capital Credit (www.baincapitalcredit.com), founded as Sankaty Advisors in 1998, invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Our team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.

About Castello SGRCastello SGR S.p.A. established in 2007, is a leading Italian asset management company focused on management of alternative investments. With a team of 40 people, Castello is currently managing more than 30 funds for asset under management in excess of Euro 2.0bn.