Etude PwC

March 2015 Click to launch www.pwc.co.uk Portfolio Advisory Group Market Survey 2015 Market Survey 2015 Introduction Richard Thompson Global Leader - Portfolio Advisory Group, PwC UK 2 | Market Survey 2015 | PwC Welcome to our Market Survey 2015. th This is the 4 year we have undertaken the survey and have once again had a tremendous response from both buyers and sellers of loan portfolios, with over 60 different groups taking part. Those surveyed ranged from banks to hedge funds to private equity groups. This is a market leading loan portfolio survey and seeks to understand and evaluate the loan portfolio sale market, as well as what and where investors are planning to target next. We estimate European banks currently hold€1.9trn of non-core loans. Whilst the majority of deleveraging is expected to be by way of natural run-off, in line with our predictions there has been a substantial increase in deal activity in loan portfolios–most notably in commercial real estate. In 2014 we saw loan portfolios with a face value of €91bn trade, mostly coming from banks in the UK, Ireland, Spain and Germany. We estimate that the investors in this market have more than€70bn of equity available and many are undergoing further fundraising. We expect volumes of loan portfolio deals to continue to increase over the next few years as European banks continue to restructure and deleverage.