Aleph Capital Partners LLP (“Aleph”) has today announced it has entered into an agreement to acquire Finans2 AS (“Finans2” or the “Group”), a service provider to owners of non-performing loans in Denmark, Norway and Sweden, from Bank2 ASA. As part of the transaction, Finans2 will also simultaneously acquire unsecured Non-Performing Loan (“NPL”) portfolios from Bank2 ASA. Financial details of the transaction, which is subject to approval by the Financial Supervisory Authority of Norway (Nw. Finanstilsynet), are not being disclosed. Following completion, Aleph will become the majority shareholder of Finans2.
Finans2, which is headquartered in Norway, focuses on servicing and purchasing unsecured NPL portfolios through partnerships with Financial Services institutions in the Nordic market. Under the guidance of a new management team, and with Aleph’s target equity commitment of up to €400 million, the Group aims to become a significant purchaser and servicer within the European NPL market.
The European NPL market is estimated to be approximately EUR 1 trillion in size and is growing rapidly, underpinned by changing regulatory capital requirements and the need for European financial institutions to deleverage their portfolios. Through a high degree of automation and focus on digitalization, Finans2 will be able to scale quickly to capture this demand, while ensuring a sustainable, competitive, and flexible cost structure.
To establish Finans2 as a pan-European player in the NPL industry, Aleph has recruited a management team and Board with significant industry experience. Endre Rangnes, who was formerly CEO of Lindorff from 2010-2014, and was the founder and CEO of Axactor from 2015-2020, will join Finans2 as its CEO. The Board will include Jon Harald Nordbrekken, founder of Aktiv Kapital, Gothia Financial Group, B2Holding ASA and Bank2 ASA, as Executive Chairman.
Hugues Lepic, Founder and CEO of Aleph Capital, said: “We are excited to be acquiring Finans2 and working with a highly experienced management team to support the Group’s ambitious expansion plans. This marks Aleph’s latest investment in the financial services sector, and we look forward to leveraging our significant sector expertise and experience of building alternative investment management companies to help grow Finans2.”
Jon Harald Nordbrekken, incoming Chairman of Finans2 AS, said: “I look forward to taking on the role of Chairman of the Board and to cooperating closely with Endre Rangnes as CEO. I am confident that we will be able to rapidly establish Finans2 as a pan-European player with a low-cost, highly flexible and scalable operating model that is able to deliver advanced offerings to our clients. With large volumes of NPL portfolios anticipated for sale in Europe in the following years, and a high level of debt recovery from financial institutions across Europe, Finans2 is very well positioned for sustainable growth.”
Finans2 is currently a subsidiary of Bank2 and offers the entire value chain from invoice management, reminder service, purchases of receivables/factoring, debt collection services and purchases of unsecured Non-Performing Loans (NPL). Finans2 is established in Norway (HQ), Sweden and Denmark.