Investohills Group Focuses Strategically on Investment Business While Closing Its NPL Projects

Investohills Group moves its business up to a new strategic level. The Group will focus on attracting investments into Ukraine’s economy while winding up its business on the NPL market.

The major reasons for this decision include the attainment of Investohills’ business goals in dealing with NPL and the challenges the national economy faces due to the war with russia.

The practice of law focused on recovering the damage caused by russian invaders to the Ukrainian businesses will become yet another line of the Group’s business.

“Attracting investments, including those foreign, into Ukraine will be the major focus of the Group’s business in the nearest future. In my opinion, this is exactly what our country needs to protect its economy and rapidly restore it after the war. Also, our lawyers are preparing to offer other companies our services aimed at recovering losses caused to their business by the russian invaders,” Andriy Volkov, Investohills Vesta Group’s founder and managing partner, disclosed the plans.

He also indicated that a decision was made within the framework of the Group’s strategic reorganization to finalize the professional activities of Investohills Vesta Financial Company on the NPL market; the company used to be the largest NPL buyer from the Deposit Guarantee Fund (DGF) since 2018. Investohills Vesta requested the National Bank of Ukraine to annul its financial services business license, and the NBU issued a decision to that effect in early December.

The company worked out successfully the major portion of the NPL portfolio bought from the DGF. Using legal tools, Investohills Vesta achieved a high rate of old corporate loan debt repayments. The best-known and most successful collection cases include Yablunevyi Dar, Rosava, and others.

A significant portion of the NPL portfolio earlier managed by Investohills Vesta was sold to other market participants. For instance, Investohills Vesta entered into an agreement with Investohills Helianthus International Fund in late 2021 to sell assets of the company’s Ukrainian investors purchased from the DGF from 2018 to 2020. It was the first significant agreement in Ukraine, with foreign investors buying a portfolio of corporate NPLs.

“The company’s plan for managing the DGF’s portfolio assets called for 2 to 3 years of active operations (asset acquisition and collection). We met our goals successfully and made some profit. Currently, we cannot see any prospects for developing the NPL recovery business. During martial law, the DGF has been selling minor balances of liquidated bank assets without offering new assets. Also, it is very difficult and does not always make sense to collect the debt under loans while the country is at war. And you can’t even sell whatever you have collected. For this reason, Investohills Vesta decided to surrender its financial services license and start with the self-liquidation procedure. It is a standard procedure used by many financial market participants,” Yevhen Diachenko, Investohills Vesta Director, said.

The remaining loan portfolio of the company will be split among investors willing to work them out on their own.