Jupiter Finance – The company operates in the sector of non-performing loans and at December 31 2010 was managing loans of € 2,326 million (nominal value), subdivided into loans on the books (i.e. acquired through the securitization vehicles Zeus Finance and Urania Finance) for € 1,371 million, and loans managed for third parties (i.e. for other investors) for € 955 million.
The value of CIR’s investment in this activity at December 31 2010 was € 59.1 million.
In October Bank of Italy notified Jupiter Finance of a measure on the basis of which the company must refrain from entering into new transactions because various observations of an administrative and organizational nature were made. Regarding this measure, apart from perfecting a capital injection for a total of € 1.5 million, the company started and has almost finished a process of sorting out its company procedures and amending its corporate governance in order to comply with the requirements of the above-mentioned order.
Furthermore, in December a partial proportional demerger was finalized in favour of Nexenti S.r.l.; with this deal the activities and equity investments not belonging to the Master Servicing business were spun off into the beneficiary company.
Ktp – The KTP Global Finance group (in which
After this sale the portfolio of KTP Global Finance contained only one investment, a 100% stake in CQS Holding, which in turn holds 90% of Ktesios S.p.A., the company that has been operating for some years in Italy as a financial intermediary, making personal loans secured on one fifth of salaries or pensions in the name of and on behalf of certain banks.
This activity is subject to the control of the Bank of Italy which authorizes companies to exercise the business provided they can give suitable guarantees and are therefore registered on special lists (as per Art. 107 and Art. 106 of the Banking Consolidation Act (T.U.B.) managed by the Bank itself.
The continuing difficult financial situation and the new market environment which has seen profound regulatory changes with banks entering the sector as well, seriously compromised the profitability of Ktesios.
Furthermore in the early months of 2011, the company’s main banking partners stopped making loans through Ktesios which therefore had to stop doing business. Acknowledging the situation of discontinuity and the continuing lack of capital of the company compared to what is required by current regulations, on March 8 2011 the Bank of Italy struck Ktesios off the special list as per the terms of Article 107 of the T.U.B.
On March 9 2011, acknowledging the situation, the Board of Directors of Ktesios voted to liquidate the company up as per the terms of Art. 2484, first paragraph, n.2 of the Civil Code (impossibility of pursuing the company object) and at the same time approved a balance sheet prepared with criteria of discontinuity, which showed negative equity.
At the end of the year 2010 CIR International wrote down its investment in KTP Global Finance by € 4 million to zero.
Cir Ventures – At December 31 2010 the portfolio of CIR Ventures, the venture capital fund of the Group, contained investments in five companies, of which four in the United States and one in Israel. These companies all operate in the sector of information and communications technology. The total fair value of these investments at December 31 2010 was € 15 million dollars.
Investments In Private Equity Funds - The CIR Group, through its subsidiary CIR International, manages a diversified portfolio of funds and minority private equity holdings, the fair value of which determined on the basis of the NAV provided by the various funds at December 31 2010 was approximately € 75 million. Remaining commitments outstanding at December 31 2010 amounted to € 25 million.