RCB Investimentos, a master servicing platform for non-performing loans in Brazil, has announced a partnership with Norfolk, Va.-based debt-buying giant PRA Group.
PRA Group purchased a majority position in RCB in early August.
RCB founders Alexandre Nobre and Renato Toledo plan to continue managing the company's business in Brazil. Company officials said the transaction promotes the "long-term vision of RCB in Brazil" and provides PRA Group with a strategic partner for entering the "large and thriving” Brazilian distressed loan sale market.
Steve Fredrickson, chairman and CEO at PRA Group, said: "We see Brazil as a significant long-term growth opportunity. In RCB, we have what we view as the best underwriter and master servicer in the country run by a fantastic management team. We are very excited to continue diversifying geographically and work with Alexandre Nobre and Renato Toledo to further develop RCB."
Nobre, CEO at RCB, said the partnership builds his company’s position in the Brazilian market as a major independent solution provider. "With a stronger capital base, RCB will be even more competitive when bidding for its clients' sale offerings, leveraging PRA's proven experience as an efficient and highly compliant international collection resource,” he said. PRA Group earlier this month reported annual growth in revenue, net income and cash collections for the second quarter ended June 30. Revenue increased by 20% to $237.2 million but investors had expected to see 26% growth.
In last year’s second quarter, PRA Group took a large hit as a result of its $880 million
