Photo: Eivind Yggeseth

Zolva aquires Euro Service S.p.A in Italy and gets 350 new colleagues. The acquisition is in line with Zolva`s clear strategy of becoming a leading pan-European company within non-performing loans (NPL) and debt collection. During the past nine months, Zolva has grown significantly and has a portfolio of EUR 4,521 million in face value.

In August last year, Zolva (formerly Finans2) acquired Multigestion, a well-established player in the Iberian NPL servicing market with operations in Spain and Portugal. With the acquisition of Euro Service, Zolva’s position in the European market is strengthened. Euro Service is a well-established player in the Italian NPL market.

Zolva´s CEO Endre Rangnes is pleased to have completed another important acquisition:

“The acquisition of Euro Service makes Zolva well positioned in the Italian NPL-market. The main focus for Zolva Italia will be on third-party debt collection and the purchase of debt portfolios from financial institutions and the public sector. We are very happy to welcome 350 new colleagues to the Zolva Group.”

Euro Service’s former CEO and owner, Antonio Persici says:

– I`m confident that Zolva is the ideal partner to ensure Euro Service and its staff a satisfying future on the Italian market. It will be exciting to be part of the journey as a board member of Zolva Italy.

The owners of Zolva, Aleph Capital and J. Safra Group, have had an important role in securing strong growth during the past nine months. Together with the management of Zolva the ambition is to establish a pan-European platform for non-performing loans and debt collection. Zolva will expand through both organic growth and new acquisitions and the goal is to challenge the industry with innovative and flexible solutions.

The companies previously part of Finans2, are now all rebranded as Zolva. During the second quarter, Euro Service will also be rebranded to Zolva.

Maurizio Tucci is President and interim Country Manager for Euro Service. He will hold the position until a permanent successor has been appointed. Mr. Tucci has wide experience of working in various top management positions in several Italian businesses and industries.

About Euro Service

Euro Service is a Credit Management Company established in Italy in 1998, headquartered in Rome with offices in Piedimonte Matese (Campania), Ancona (Marche) and a backoffice operation in Romania. The company is active in the market for NPLs, completing transactions both directly and by means of special purpose vehicles. Euro Service has developed expertise over the last decade in managing debts generated by gas & power providers, telco and public services, as well as banks and financial institutions. In the latest Survey published by PWC, Euro Service is classified among the top 20 best performing Italian Special Servicers.

About Zolva

Zolva offers services across the entire value chain from invoice management, reminder service, purchase of receivables/factoring, debt collection services and purchase of non-performing loans (NPLs). Zolva is currently present in Norway (HQ), Sweden, Denmark, Spain, Portugal and Italy. Including Euro Service, Zolva has a portfolio of EUR 4,521 million in face value. Zolva is owned by Aleph Capital and the J. Safra Group and management. For more information: Zolva

About the J. Safra Group 

The J. Safra Group, with total assets under management of over US$300 billion, consists of privately-owned banks under the Safra name and investment holdings in real estate and agribusiness. The J. Safra Group’s banking interests in over 160 locations globally, are: J. Safra Sarasin, headquartered in Basel, Switzerland; Banco Safra, headquartered in Sao Paulo, Brazil; and Safra National Bank of New York, headquartered in New York City, USA. The J. Safra Group’s real estate holdings consist of more than 200 premier commercial, residential, retail and farmland properties worldwide, such as New York City’s 660 Madison Avenue office complex and London’s iconic Gherkin Building. There are more than 34,000 employees associated with the J. Safra Group.

About Aleph Capital 

Aleph Capital Partners LLP is an independent European investment firm that backs companies driven by secular industry themes. Aleph works closely with management teams as a long-term investor providing flexible and bespoke capital solutions to deliver value growth. The firm was founded by Hugues Lepic, who led the European private equity investing business of Goldman Sachs between 2006 and 2012. For more information: Aleph Capital Partners LLP.

For further information:

Zolva Group CEO Endre Rangnes

E-mail: [email protected]

Mobile: +47 48221111

Zolva Group CFO Scott Danielsen

E-mail: [email protected]

Mobile: +47 95255620

Establishes a new competitor

– How do you think your previous employer reacts to the news about you establishing a new competitor?

– I must admit that I haven’t thought about that. We are entering into a large market. As such, I believe there is room for another competitor, says Rangnes.

When Rangnes started Axactor in 2015, he came from the position as CEO at Lindorff. At the time, Axactor recruited many of Lindorff’s employees. Instead of shareholders fearing that the same would happen this time around, the Axactor shares got a solid boost on the Oslo Stock Exchange. B2Holding also experienced the same boost. Jon Harald Nordbrekken is the third largest shareholder.

On Friday, both shares increased with 4.4 percent.

Aleph Capital pays NOK 400 million for an 80 percent ownership share in Finans2. Nordbrekken and Rangnes enters the company with a total of NOK 50 million, giving them 20 percent ownership. In addition, Aleph Capital Partners will contribute with NOK 4 billion to create a leading pan-European non-performing loan platform and debt collection agency. With additional loans, Finans2 will have more than NOK 10 billion to trade non-performing portfolios.

– We will work together with banks and financial institutions to buy non-performing portfolios. The ambition is to use Finans2 as a starting point for further expansion in the European market, says Rangnes.

“Bullmarket”

Several analysts predict that there will be a bull market for the debt collection industry after the pandemic.

– In Europe there are large volumes of non-performing portfolios to be sold. Not all players have equal access to capital, which has created an imbalance in the marked. As such, our timing is very good. The prices are going down, and we have over NOK 10 billion to spend, says Rangnes.

However, Rangnes will not reveal which countries Finans2 will enter first. His only comment is that they are relatively large markets in Europe with a good volume of non-performing portfolios.

– Our aim is to rapidly establish our business and enter seven countries within the next six to twelve months. Aleph Capital has a very good network of financial institutions in several European countries. Finans2 already have offices in Denmark and Sweden. To Finansavisen`s knowledge, Finland will be one of the first countries the company will enter. This entry fits Nordbrekken`s profile. All of his companies have invested in Finland at an early stage.

Experienced management team

– We are establishing a competitor to both Axactor and B2Holding, says Nordbrekken, and continues:

– The credit management market is huge and will grow in the future. As such, it is not a problem that we are establishing a new competitor.

Nordbrekken has a value of NOK 215 million in B2Holding and has not sold a share in the company he once established. This week, several major shareholders, such as Stenshagen Invest and Rasmussen Group, acquired more shares in the company.

Nordbrekken and Rangnes may be characterized as some of the most experienced stakeholders in the industry.

Nordbrekken has worked in the debt collection industry since the 1980s. He started his career in Intrum Justitia, and has founded Aktiv Kapital, Gothia Financial Group and B2Holding. Rangnes was the CEO at Lindorff from 2010-2014. In addition, he founded Axactor in 2015 and served as CEO until 2020, when he was fired by John Fredriksen, the majority shareholder in the company.

-In this industry you need to work with the best people. We are searching for the most talented people, and with our network I am sure we will attract the right minds, says Rangnes.

No plans to sell his stocks in Axactor

Rangnes is still the fourth largest shareholder in Axactor. However, he will not sell his shares, even though Axactor is one of Finans2`s competitors.

– The market value of Axactor does not reflect the underlying values in the market. I think the entire industry will be revalued, due to large volumes of debt portfolios coming on the market soon, says Rangnes.

As part of this strategic partnership, Aleph and the J. Safra Group are pleased to announce the signing of definitive documentation to purchase Multigestion Iberia S.L.U. (“Multigestion”). In March 2021, a fund backed by Aleph had announced the agreement to acquire Finans2 in Norway. Multigestion and Finans2, pending receipt of regulatory approval in Norway, will be both integrated into the new pan-European platform by the management team led by CEO Endre Rangnes. The acquisition of Multigestion marks the next key milestone in the development of the platform as it establishes itself as a significant pan-European NPL purchaser and servicer.

Multigestion is a well-established player in the Iberian NPL markets, having operated in Spain and Portugal for close to 30 years. Multigestion has scale, bringing with it circa 250 employees and EUR 5.7 billion of NPLs under management as a third-party collection provider, and mainly serves the financial services sector. Finally, Multigestion has developed a highly scalable collection platform and has invested significantly in new collection processes over the past 3 years.

In addition to Multigestion, the new platform has also made its first acquisition of a Spanish unsecured NPL portfolio. The portfolio has an outstanding principal of EUR 3.16 billion and consists of 650 000 claims. The portfolio will be managed by Multigestion.

According to the European Central Bank, the size of the European NPL market is expected to increase to ~EUR 1.4 trillion by end 2022.  The platform’s new management team has proactively targeted Iberia as one of the first jurisdictions to expand into along with the Nordics. The ambition is to become the partner of choice to local financial institutions for the management of their unsecured NPL portfolios, whether through NPL sales or long-term scalable and flexible servicing agreements. Following the Multigestion acquisition, the new platform will be well positioned to do exactly this in Iberia.

Endre Rangnes, Group CEO of the new platform said: “With the acquisition of the Multigestion, we are acquiring a solid platform in Spain and Portugal and will be well positioned in the financial services segment, focusing both on third party collections and portfolio acquisitions. We are excited to get more than 250 new colleagues and a very experienced management team on board. This acquisition is the first step in our Pan-European growth plan with focus on the financial services sector.”

Jacques Llorens, CEO Multigestion said: “Multigestion is a great match for the new platform. Combining our knowledge and experience from the Spanish and Portuguese credit management industry with the group’s knowledge and financial resources will enable us to deliver a competitive debt collection offering and grow our operations to the next level.”

Closing of the Multigestion and Spanish NPL transactions are not subject to any regulatory approval and are expected to occur by the end of July 2021. The acquisition of Finans2 remains subject to on-going regulatory approval by the Financial Supervisory Authority of Norway (Nw. Finanstilsynet). Once the approval is obtained the businesses will be combined into the new group structure.

Enters the market with NOK 4,2 billion

After a period of negotiations Finans2 agreed upon an extensive partnership with J. Safra Group, an international conglomerate controlled by the Safra family.

J. Safra Group is committed to contribute with 400 million euros, equivalent to NOK 4,2 billion. Rangnes says the company most likely will provide significantly more capital in the long run.

– The credit management industry is fragmented and barely consolidated. We want to consolidate in the long run. As such, there is a need for more capital, says Rangnes to Finansavisen.

J. Safra Goup is a leading company within the industry, and the family-owned conglomerate owns banks and companies across the world. The Group`s has 270 billion dollars in total assets and 20 billion dollars in equity.

– By having J. Safra Group on board we have a solid financial backing. The Group will be involved in all our purchases to ensure a good return on invested capital, says Rangnes.

Joseph Safra, the founder of J. Safra Group died last year, 82 years old. He was the wealthiest banker in the world and the richest man in Brazil. According to Forbes, Joseph had a fortune of 13.8 billion dollars in 2020. The conglomerate currently consists of the following banks: Banco Safra, the sixth largest bank in Brazil, J. Safra Sarasin, the sixth largest bank in Switzerland and Safra National Bank of New York.

– We will most definitely benefit from Safra Group`s financial muscles and expertise. The partnership will give us many opportunities in the future, says Rangnes.

The first Acquisition

Finans2 has offices in Norway, Sweden and Denmark. The ambition is to rapidly establish a presence in six to seven countries within a short period of time.

The new group has recently made its first acquisition outside the Nordic region, the Iberian company Multigestion.

– With the acquisition of Multigestion, we are acquiring a solid platform in Spain and Portugal and will be well positioned in the financial services segment, focusing both on third party collections and portfolio acquisitions.

Multigestion is a well-established player in the Iberian NPL markets, having operated in Spain and Portugal for close to 30 years. Multigestion has scale, bringing with it circa 250 employees and EUR 5.7 billion of NPLs under management as a third-party collection provider, and mainly serves the financial services sector. Last year the company had a revenue of 8 million euros.

– Previously, Multigestion has not bought non-performing portfolios. We are now scaling up this work, says Rangnes.

Rangnes has recruited the former Spanish CEO at Axactor to be in charge of the scale up.

Buys portfolio in Spain

Initially, Aleph Capital and Safra Gorup enters the partnership with 20 million euros each. As such, they will get an 80 percent ownership share in Finans2. Nordbrekken and Rangnes enters the company with a total of 5 million euros, giving them 20 percent ownership.

– Going forward, J. Safra Group will provide significant equity making them the largest owner, says Rangnes.

In addition to Multigestion, the new platform has also made its first acquisition of a Spanish unsecured NPL portfolio. The portfolio has an outstanding principal of EUR 3.16 billion and consists of 650 000 claims. The portfolio will be managed by Multigestion.

– With the accusation of Multigestion, Finans2 is already present in five countries. Our initial aim is to expand in the Nordics and Iberia. In parallel, we are working with two/three other countries. We want to enter larger markets such as Italy, France and Germany, says Rangnes.