Nova Fides GmbH secures BaFin license, poised to navigate non-performing loan market

Nova Fides GmbH, a consultancy firm specializing in loan and investment management and restructuring, has officially received its license as a credit services institution for commercial loans. The license, granted by Germany’s Federal Financial Supervisory Authority (BaFin), allows the firm to manage non-performing loans (NPLs) on behalf of purchasers operating in the secondary credit market, as per the Secondary Credit Market Act (KrZwMG).

This move is seen as pivotal for Nova Fides, positioning the firm to capitalize on the growing demand for professional services in the management of distressed loans. Annette Benner, Managing Director of Nova Fides, commented on the development, stating: “We have noted strong demand for transactions on the secondary credit market. In the coming months, banks will increasingly start to divest themselves of non-performing loans. This will generate keen demand for advisory and administrative services. Under the Secondary Credit Market Act, purchasers must go through licensed credit services institutions. For Nova Fides, the BaFin license to operate as a credit services institution represents a major component in its range of services.”

Founded in 2023, Nova Fides was established to offer comprehensive support in the restructuring and management of real estate loans and investments. With the BaFin license now in hand, the firm is well-positioned to expand its services beyond real estate, offering expertise in broader commercial financing scenarios, regardless of the collateral involved.

Dr. Gordon Geiser, also a Managing Director at Nova Fides, emphasized the firm’s capability to manage complex restructurings and NPL transactions. “Although we have our roots in real estate financing, we are superbly positioned thanks to our BaFin license, our knowledge, and our experience to manage other commercial financing arrangements whose collateral is something other than real estate. Many lenders and purchasers may now draw on our resources and know-how in order to respond adequately to the multi-layered and complex issues associated with restructurings or NPL transactions, and to avoid the liability risks that often come into play,” Dr. Geiser remarked.

As banks prepare to offload increasing volumes of NPLs, Nova Fides’ new status as a licensed credit services institution is expected to make it a key player in the secondary credit market, assisting purchasers in navigating the complexities of distressed financing.

Photo: Annette Benner, Managing Director and Dr. Gordon Geiser, Managing Director, Nova Fides