Insuring Loan Portfolio Sales
Our team features seasoned professionals with backgrounds in legal restructuring and credit risk underwriting.
Loan Portfolio Insurance Considerations
Why choose us?
We have expertise in legal restructuring and credit risk underwriting and are well-equipped to handle both performing and non-performing loan portfolios. Whether structured as share or asset sales, our team excels in transactions involving amalgamated loan books of securitised debt. A diversified loan portfolio, covering both safe and risky loans, minimises the risk of losses.
Key benefits
Our team excels in NPL transactions, having worked with global banks and private equity funds. Between 2015-2019, NPL valuations returned to pre-crisis levels, spurring increased trade activity. Our W&I insurance, when structured effectively, facilitates negotiations by providing the buyer with protection around data accuracy and financial information, while allowing the seller to limit recourse significantly—transforming escrow amounts from 10%-20% to more favourable terms.
Loan Portfolio Sales Insurance Solutions we provide
Premium:
Higher than traditional W&I insurance, premiums for loan portfolio insurance range between 1.5%-2% rate online.
Process:
Due to detailed diligence in acquiring loan portfolios, transactions take longer compared to traditional W&I. Engaging with us early is recommended for advice on structuring the transaction, understanding insurability, scoping diligence, and drafting insurable warranties.
What our clients say
“A smooth W&I process on our transactions, whether acquiring or divesting, is paramount for LDC as an investor. We regularly work with the Paragon team, where given the choice, because their expertise and in-depth knowledge of the M&A insurance market enables them to achieve fantastic results in tight timeframes.”
“Their strong knowledge of how insurance solutions fit into M&A processes is second to none and the team has consistently provided invaluable contributions through the underwriting and policy negotiation phases showing their commitment to understanding the assets and specific issues involved.”
“As an M&A adviser we are always looking for partners who can assistant in reducing friction and complexity in transactions – helping to keep the focus on what really matters most to our clients. Having worked with a range of brokers in the space, the team at Paragon is a clear standout in developing fit-for-purpose insurance solutions and being trusted to deliver what they’ve promised. They are a pleasure to work with.”
Insuring Loan Portfolio Sales FAQ’s
Due to the detailed diligence required in acquiring loan portfolios, the transaction process is prolonged compared to traditional W&I transactions. Engaging early with Paragon is advised for efficient structuring, insurability understanding, diligence scoping, and warranty drafting.
Premiums for Loan Portfolio Sale Insurance are generally higher, ranging between 1.5%-2% rate online, influenced by factors such as portfolio size, performance, and the complexity of underlying security.