KPMG has launched an online portal for the sale of loans, targeted initially at banks looking to dispose of non-core, granular elements of their book.
It is also being used by investment banks and special situations teams to dispose of loans.
The KPMG Deal Room is already live, with a few “family and friends” exploring the early use of the technology with around 10 live deals. The advisory firm predicts that the KPMG Deal Room will ultimately be used for the sale of assets, whole businesses, debt and for raising equity.
The sales documents for the opportunities will be formulaic so that prospective purchasers will be familiar with the format of the portal and able to submit bids online.
Access to the KPMG Deal Room will be on a vetted basis: buyers will have to be approved regularly to ensure that they are dealing with the purchasing and handling of loans in a professional manner. For more bespoke sales, only a select group of potential buyers approved by the seller will be given access.
The KPMG Deal Room has been developed by the global portfolio solutions group at KPMG, headed in the UK and western Europe by Andrew Jenke. But it will also be used by its UK transactions team, headed by Andy Pyle.
Nicholas Colman, a KPMG partner and UK head of deal advisory for banking, said: “The UK banks now don’t have a lot of large loan portfolios left to sell but what they are looking to do is to churn their balance sheets a bit more and exit particular customers that they don’t like the risk profile of anymore, sometimes where the loan is fine.
“With the portal, they would then have a more liquid market for that kind of transaction.”
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