Vultures are Private equity funds that purchase
non-performing or distressed loans at heavily
discounted prices, which are eventually sold at
Even though they purchase at a huge discount, these vulture funds are attractive prospects for banks as they can clear non-performing loans off their books.
Banks have been ensuring they demonise debtors by calling them strategic defaulters and non engagers. This is designed to portray them as bad and lesson the public sympathy when the banks sell them to a vulture fund. The truth is most have engaged and the bank have assessed them and shown they cant afford their mortgage.
These loans normally relate to real estate i.e. commercial or residential property. Vulture funds purchase these loans with the aim of taking charge and possession of the asset, through either a Receiver or the courts. They aim to sell the properties quickly to turn a profit in a short time frame. These funds prey on weakness in the mortgage system for commercial gain, ignoring the human suffering.
Irish banks are willing to sell these debts in bulk for under their market value in order to clear t he debt from their balance sheets and remain operational and profitable.
Many homeowners did not realise they were vulnerable to these vultures. It was only when banks started selling residential loans to these vultures that homeowners were made aware that their banks had the legal right to sell their loans without their permission.
VULTURE TAKE-OVER 2016-1019
Vultures are after a series of loan-sales one of the dominant groups in the Irish housing and commercial property market. Since 2016, the centenary of the Easter Rising, vultures have acquired just under thirty billion Euros (€29,746,000,000 million) of Irish property. In an indication of how the state works hand in glove with vultures one of the top sellers to vultures have been NAMA. We have, by stealth almost, in terms of property and family homes become a colony of the vulture funds … a vulture nation. The figures below are documented proof of Irelands vulture take-over.
|Vendor||Purchaser||Period||Asset Class||Performance||Loan Balance (million)*|
|Danske Bank||Cerberus||2016 Q3||Residential||Non-Performing||€300|
|Lone Satr||Bank of Ireland||2016 Q3||Residential||Re-Performing||€640|
|Ulster Bank||Cerberus||2016 Q4||SME/Resi||Non-Performing||€2,500|
|AIB||Goldman Sachs||2017 Q2||Residential||Non-Performing||€400|
|Danske Bank||Pimco/Goldman Sachs||2017 Q3||Residential||Performing||€1,800|
|Loyds Banking Group||Barcleys||2018 Q2||Residential||Both||€5,000|
|PTSB||Lone Star||2019 Q1||Residential||Non-Performing||€2,200|
|Rabobank||GS, Carval, Cabot||2019 Q2||Residential||Both||€800|
|Ulster Bank||Carval||2019 Q3||Residential||Both||€2,200|
|Ulster Bank||Cerberus||Not Complete||Residential||Non-Performing||€1,400|
|PTSB||Lone Satr||Not Complete||Residential||Non-Performing||€506|
*estimated loan balance - some sales include both PDH's, BTL's and commercial where the breakdown has not been disclosed