Debt sales

Debt sales are no longer just about clearing problem loans. They serve as a strategic lever for banks and alternative lenders to rebalance loan portfolios, reduce sector concentration, and optimise capital adequacy ratios (CARs) as regulatory standards evolve. Crucially, they also release capital that can be redeployed into new and more productive lending.

BTG acts as a trusted sell-side adviser, connecting lenders to a global network of secondary debt investors – including private equity and hedge funds, asset managers, investment banks, family offices, and sovereign wealth funds. Partner-led teams combine market expertise with senior-level relationships to ensure lenders and PE vendors achieve maximum value from SME loan sales.

Successful lender debt sales need to balance achieved price with transaction certainty and speed. Virtual data rooms are a necessity. They provide investors with access to regularly updated collateral information, from asset loans, leases, and client and service contracts, to financial models, insurance, and licenses. Vendors can differentiate buyer interest by monitoring data room activity, which invites more nuanced negotiations, supports faster transactions, and narrows bid-ask spreads.

Once data rooms are prepared, outreach to targeted qualified global investors is undertaken to create price competition. Every transaction has idiosyncrasies that can benefit from tailored auction formats, including structuring transactions to maximise risk-weighted asset (RWA) relief and CAR benefits. Transaction support spans the transaction journey – from bidder coordination to transaction closure, borrower communications, and servicing transition.

For vendors, price matters most. While lenders may need to accept a discount to unlock liquidity, this trade-off can be minimised by assembling competitive bidder pools, comprehensive online data rooms, tailored auction formats, and end-to-end transaction support.