Loan acquisition strategy

Hoist Finance invests in non-secured and secured NPL’s towards consumers and SME’s. Expanding into secured acquisitions within our existing markets is a key element of our strategy.  These investments have the additional benefit of being subject to lower risk weights than our consumer unsecured portfolios. Our long-term focus as well as flexible and tailored product offering have allowed us to develop the expertise to structure and execute complex transactions. A guiding principle has always been, and still is, to be prudent when bidding for debt portfolios. With Hoist Finance’s tools for examining and analysing potential acquisitions, predictions are made on a 15-year horizon of future cash flows and collection costs.  

Our experience, knowledge and presence in the financial sector has resulted in our acquisition strategy; to focus on bank-originated loans, to customise our business model to enable flexibility and to be geographically diversified:

Bank-originated loans  

• High quality origination with low risk repayment profile.  
• Larger ticket size than non-bank loans. 
• Long-tail stable cash flows. 

Asset-class diversification  

• Flexibility to buy most types of financial institution-originated debt towards consumers and SMEs  
• Increased proportion of secured NPLs in recent years. 

Diversified geographic profile  

• Reduction of single-market exposure from a risk and origination perspective.  
• A more even flow of investment opportunities. 
• Strengthened value proposition to banks and financial institutions.

Hoist Finance's NPL acqusitions volume

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