SAO PAULO, July 3 Jive Investments Holding Ltd, one of Brazil's largest buyers of distressed assets, has bought $120 million worth of bad loans in Colombia jointly with another fund, its first purchase of troubled assets outside its home turf.
The pool of about 40,000 consumer and credit-card loans in arrears was purchased from an unnamed global bank with operations in Colombia, Guilherme Ferreira, a senior partner at Jive, said on Thursday. The firm teamed up with Bogota-based fund Konfigura Capital for the deal, he said.
The move underpins Jive's bet that more Latin American banks will look to specialized funds to help them rid their balance sheets of bad loans. Ferreira said the São Paulo-based fund plans to invest 250 million reais ($112 million) buying defaulted debt over the next two years, on top of the about 100 million reais that Jive has already spent in the segment.
"This is an embryonic segment in Latin America, but the outlook is one of strong growth," Ferreira said, noting that nonperforming loans are rising in the wake of higher delinquencies in consumer credit across the region.
In Brazil, state-run Caixa Econômica Federal is considering the sale of 3.2 billion reais worth of nonperforming loans to distressed debt funds, and could repackage more pools of bad debt and sell them to investors in the form of asset-backed securities, two sources said on Wednesday.
Jive has about 4.1 billion reais in nonperforming loans under management. Ferreira and partner Alexandre Marquez Cruz founded Jive in 2010 after buying Lehman Brothers Inc's assets in Brazil.
The fund, which also oversees about 50 million reais in assets of greater liquidity, has been diversifying into other types of investments to boost returns, including hedge funds and a buyout vehicle to exchange debt owed by privately held and small-sized listed companies for stock. ($1=2.23 Brazilian reais) (Editing by Peter Galloway)