Non-core Portfolios
A hidden opportunity in the NPL market
We transform low-touch, high-cost exposures into into opportunities for recover and optimization, through tailored management models
Do you have NON-core portfolios?
We can help you quickly understand whether and how to unlock their value
The hidden cost of non-core portfolios
Many NPL operators manage portfolios that, while not strategic, continue to generate operational complexity and consume resources.
These exposures
- have a limited impact on key KPIs (recovery rate, profitability)
- still require processing, costs and reporting
- presentano scarso upside atteso
- divert focus from the core business
Which portfolios fall within the scope?
Portfolios typically classified as non-core include:
- residual portfolios not aligned with the investor’s/servicer’s specialization
- retail exposures within corporate or secured portfolios
- post-auction mortgage tail positions
- exposures to guarantors or co-obligors
- unsecured portfolios after out-of-court recovery (ticket ≥ €40K)
👉 In short: asset that are outside the focus of the core operating model
A model to unlock value from non-core assets
EthicalFin NPL develops dedicated management models for non-core portfolios, with a dual objective:
- reducing operational complexity and costs
- activating new revenue streams
The solutions may include:
- irect management
- joint-workout models
- profit sharing structures
Our approach: a dual-track operating model
Our approach is based on a distinctive positioning and a dual-track operating model:
- Experience in complex banking environments
- integrated legal platform (in synergy with Torre EF Law Firm)
- specialization in mid-to-high tivket exposures (≥ €40K)
- tailor-made operating models
- direct involvement of senior professionals
Let’s adopt a dual-track operational model
- legal action provides credibility and a sense of inevitability
- while negotiation proceeds in parallel, with increasing intensity
This approach:
- increases pressure on the debtor
- strengthens negotiating leverage
- improves the likelihood of an out-of-court settlement
Results:
- operational focus on the core business
- reduced costs and complexity
- enhanced value of “dormant” assets
- access to flexible models (including performance-based)
- increased recovery on marginal positions