The experience and skills developed [by Finint] in the Italian structured finance market was the main driving force for setting up, in 2002, an experienced team of dedicated professionals to run investments (Principal Finance) and advisory services to investors on illiquid and distressed assets.

Invested assets consist primarily of mezzanine and subordinated tranches of Italian and foreign securitisation transactions as well as non-performing loans (NPLs). Investments in these types of assets require deep knowledge of the underlying asset classes (consumer loans, lease receivables, mortgage loans, NPLs, etc.), the ability to evaluate the expected performance and structured finance specific know-how.

The proprietary investments made over the past decade amount to more than €70 million.

“Finint Principal Finance 1” Fund, a closed-end real estate speculative fund, was established in 2011 and managed by Finint Investments SGR (NAV €22.3 million as of 30 September 2014; annualized return 23.4% since inception).

The principal finance team comprises 5 professionals with long-standing experience in the analysis and evaluation of financial assets portfolios and in the execution of structured finance transactions.

In addition to direct investment and investment advisory activities, the Principal Finance team provides additional services, such as:

• Due diligence, business plan development and fair value assessment of performing and non-performing loans;
• Pricing of loan portfolios and complex fixed-income securities (structured bond, derivatives, ABS, etc.);
• Cash flow modeling for stress tests, risk and sensitivity analysis of asset-backed securities and loan portfolios;
• Advisory in setting up asset-backed securities portfolios.