Capital and funding
A focused strategy
B2Holding is established as one of the leading European players within the credit management industry. During 2019, the Group announced a new strategic direction with less focus on growth, and stronger focus on efficiency and profitability. This includes an increased focus on leveraging our core platforms through a more concentrated investment strategy using both our own capital and through co-investments.
B2Holding serves an important function in the credit chain, bridging the gap caused by non-performing loans. The accumulation of non-performing loans represents a problem for society, as it put constraints on financial institutions’ ability to issue new loans. As such, players like B2Holding are crucial in order to help financial institutions deleverage.
Focused investments
At the end of 2019, the Group had platforms in 23 European countries. With access to the largest NPL markets in Europe, we see attractive market opportunities and want to focus our investments on markets with growth potential and that are of strategic importance for the Group. As a result, the Group is prepared to reduce its footprint, concentrate on core markets and thereby achieve a better return on invested capital and develop a more cost-efficient operating model.
Increased focus on debt servicing
Since B2Holding was established in 2011, the Group has focused its business on debt purchasing and collection of owned portfolios. With presence in most of the largest NPL markets in Europe, the Group has gained capabilities and capacity to also be a servicer of assets owned by other investors, mainly international funds specializing in NPL investments. Leveraging the Group’s servicing capabilities by increasing assets under management will be an important focus going forward. There are significant NPL volumes in existing markets and the Group will focus on increased market penetration in core markets through a combination of own portfolio investments and co-investments where suitable. As of March 2020, B2Holding has established such co-investment structures with servicing agreements for portfolios in Sweden, Croatia, Greece and Cyprus.