The business will be headquartered in Amsterdam and combine Brismo's standardisation and validation of performance, benchmarking, indices, analytics with LoanClear's investor services including valuation, reporting, bidding, stress testing, portfolio visualisation and allocation.
LoanClear, the investor servicing company spun out of Dynamic Credit, has reached an agreement to acquire Brismo.
Having won more than 100 valuation mandates from more than 50 clients across a range of liquid and illiquid assets, LoanClear will be adding Brismo’s loan performance measurement capabilities allowing, the firm said, to service both the ‘originator’ and ‘investor’ side of the loan market. The combined company provides services on over €60bn of loans globally.
Tonko Gast, founder and majority shareholder of Dynamic Credit, said: “Brismo has built a unique set of tools that enable investors to confidently assess value in terms of risk and return. By combining this ‘pre-trade’ expertise in due diligence and benchmarking, with LoanClear’s established ‘post-trade’ services of allocation, administration, valuation and reporting, we can provide a full service to loan market participants.”
“These services are crucial in a fast-growing private credit market where originate-to-manage is becoming a global phenomenon for consumer loans, SME loans, mortgages, etc.”
He said: “Brismo has standardised performance reporting across multiple originators and loan types. Lenders can combine this analysis with their own processes to enhance risk pricing and improve reporting.”
“With LoanClear’s pedigree in investor services the combination can deliver insights that enable investors to capture more of the performance available from the loan asset class. This will drive adoption, improve liquidity, and encourage the virtuous cycle whereby investors are fairly rewarded for the risk they take, and borrowers can access reasonably priced capital”.
The business will be headquartered in Amsterdam and the transaction is expected to close in Q3.