The Czech financial group APS, which has been investing in so-called problem receivables for a long time, has launched the APS CREDIT FUND fund with the same focus. The fund intends to raise up to EUR 20 million from investors, while the target volume of the fund is up to EUR 50 million (including leverage), ie approximately CZK 1.25 billion. APS CREDIT FUND is accepting its first money already in November after receiving the necessary permission from the Czech National Bank. The fund expects an average annual appreciation of 12%.
The fund’s investment strategy reflects the current economic situation of companies and consumers, who are strongly affected by the consequences of the coronavirus pandemic. It deprived a number of companies of cash flows and froze their projects. In order to be able to breathe economically again, they will restructure and sell problematic overdue receivables for a fraction of their nominal value. “We focus mainly on large corporate receivables, which are secured by real estate. Typical provision can be logistics centers, hotels, office and residential buildings, land and the like,” explains Martin Machoň, CEO of APS.
APS targets its fund at more affluent Czech and Slovak investors. Only the so-called qualified investor will be able to invest. The minimum investment will be one million crowns. “We expect the fund to make its first purchases of receivables during November and December 2021,” says Machoň. The expected return on investment is 12 percent per year after taking into account all costs. “Of course, this is an estimate and its amount is not guaranteed. We have historically achieved higher returns, however we want to be conservative when targeting the fund’s return. If, as in the past, we can bring investors a higher return, it will be a pleasant bonus for them, “adds Machoň.
“The market is starting to pick up again, in the last two months the APS Group has carried out three transactions (in Croatia, Romania and Bulgaria) with a total nominal value of over 5 billion crowns,” comments Jozef Martinák, Chairman of the Board of APS CREDIT FUND SICAV, a.s.
APS is cooperating in the establishment of the fund with QI investment company, a.s. (hereinafter referred to as QIIS), which is part of the Conseq group. QIIS will also be the fund’s administrator, ie it will be responsible for, among other things, bookkeeping, asset valuation and publication of fund data. The APS Group is a trusted partner of the world’s leading financial institutions, investment funds and private investors. It employs more than 700 workers in 15 countries. It manages a total of 99 portfolios with a nominal value of 9.9 billion euros. The APS Group has extensive experience with comprehensive investments across the markets of Central, Southern and Southeastern Europe. As a result, APS CREDIT FUND offers a high expected return on investment.
