Cassiopea NPL SpA (joint-stock company) was established in May 2005 as “Cassiopea Immobiliare Ltd”. The company’s original business object was buying and selling of real estate, which explains the initial purchase of non-performing loans.
The process for registering the company in the Bank of Italy’s General List (ex article 106 of the Consolidate Banking Law) was started in the second half of 2008 and was formally completed on December 21, 2009, when the Bank of Italy registered the company with number 41659 for activities of “loans granting” and “factoring”.
Once registered the company (which was totally self-funded) started a massive purchase activity of non-performing loans from both leading market players such as “Unicredit Credit Management Bank Spa” (former UGC SpA) and “Italfondiario Spa” and other institutional players as well.
In the first half of 2012 the company started the restructuring of its governance in view of the Bank of Italy’s issuing of a new secondary legislation. By doing that the company would be in a position to apply for registration in the new List of Financial companies (ex article 106 of the Consolidated Banking Law as amended by legislative decree 141/2010). Although the regulations had not been enacted yet, the company’s founding members decided early to adopt them despite the increase in costs that such a move would imply. For his specific competencies Dr Giovanni Raimondi was co-opted onto the Board of Directors as independent President in order to manage the whole restructuring process internally.
Therefore in 2012 Cassiopea adopted a structure able to properly oversee risk management and its related critical activities through the hiring of experienced professionals. On July 16, 2014 the restructuring process was completed with the approval of the Internal Regulations (ex Legislative Decree no. 231/2001), the establishment of an Audit Committee and the approval of the company’s Ethical Code.
The operational decision taken by Cassiopea ahead of other NPL players is now allowing the company to focus its efforts on the increase of operational volumes and the development of an efficient and profitable business model.
The adoption of the new organizational model together with the new financial resources available allowed the company to focus its investments on unsecured non-performing loans, with the effect of exponentially increasing the GBV of its owned non-performing loans.
In this regard, in December 2014 the company purchased a whole package of unsecured loans credits from Crediveneto Credito Cooperativo Bank amounting to GBV €24.6 mln and bought unsecured NPL amounting to €9.5 mln in November 2015. The evaluation of another bulk of unsecured NPL of €20.8 million is presently ongoing and estimated to come to a close by December 2015. These operations will generate substantial value for stockholders in 2016-2020 considering that the company (break-even in 2014) is in a position to bear exponential increases of volume thanks to the foresight of the strategic choice made in 2012.
At present Cassiopea owns a portfolio of €40 mln non-performing loans. Namely it is made of €5 mln non performing mortgage loans and €35 mln unsecured non performing credits (recently purchased between end of 2014 and November 2015).
A further increase of €20 million is foreseen by end of the year through the investment of just the operational cash flow.
The contribution of additional equity would allow the company to further increase its investment portfolio.
The reference market will offer huge investment opportunities in 2016 and 2017. Thanks to its increased operational volumes, early-adopted compliant structure and streamlined processes, Cassiopea will act as a reliable and trusty player offering challenging, though feasible, profit expectations to its investors.
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