European specialist private credit investor Veld Capital has partnered with technology-focused investor EOS Group for the purchase of a €364m portfolio of regulated French consumer loans from BNP Paribas Personal Finance, which contains over 125,000 small balance French consumer loans with an average balance of under €3,000.
According to a press release, Veld Capital and EOS have previously co-invested in European jurisdictions and asset types. For this transaction, the two investors jointly funded a securitisation vehicle to purchase the portfolio’s underlying assets, with servicing being migrated to EOS for management. Veld describes the portfolio as having a strong, stable cash flow from amortising loans with affordable monthly payments and a weighted average seasoning of over two years.
Veld Capital was previously known as AnaCap Credit, having been established in 2009 as the credit investment arm of London-based AnaCap Financial Partners before carving out as an independent platform in 2022. Veld has raised around €2.7bn in capital across its credit opportunities, real estate and permanent capital vehicles since inception.
EOS is part of German retail company Otto Group and employs over 6,000 people.
In a statement, Konstantin Karchinov, a Partner at Veld Capital, said: “It has been a pleasure to be involved in this transaction, the fund’s first investment in French consumer loans. Both the French market and our strong relationship with EOS are key sources of high potential opportunities in 2024 as Veld launches its fifth flagship Credit Opportunities fund.”
