01 — Core authority
NPL & Distressed Credit
Pricing a non-performing portfolio means projecting recovery behaviour on an asset whose documentation, collateral and history are rarely complete. The discipline lies in separating what is measurable from what is assumption — and pricing the difference.
01The problem
Non-performing portfolios consume provisions and regulatory capital from the institution that originated them, and demand specialised recovery infrastructure most lenders do not have. Blackhill connects those who need to sell with those who have the mandate, structure and appetite to acquire.
02Why it is complex
- 01
Granular retail and corporate portfolios follow distinct recovery logics and should not be priced with the same model.
- 02
The recovery curve depends as much on vintage and aging as on the operational capacity of the servicer that will take over collection.
- 03
The legal soundness of the assignment — debtor notification, registration and documentary chain — determines the enforceability of the acquired claim.
- 04
Stressed corporate exposures require reading collateral, subordination and reorganisation scenarios, not merely default.
- 05
Assignment of retail portfolios involves personal data processing and therefore LGPD compliance throughout.
03Who can engage us
We act under mandate. Fit is assessed case by case, before any commitment.
Banks, finance companies and credit unions with portfolios to assign
Companies holding non-performing receivables portfolios
Funds and asset managers mandated in distressed and special situations
Securitisation companies and vertically integrated servicers
04How we work
Advisor, structurer and intermediary. We do not acquire the asset we advise on.
- 01
Portfolio origination from banks, finance companies and corporate sellers.
- 02
Stratification by product, vintage, aging, average ticket and presence of collateral.
- 03
Construction of the projected recovery curve and sensitivity analysis on recovery rate and tenor.
- 04
Servicer assessment: operational capacity, collection workflow, systems and LGPD compliance.
- 05
Transaction structuring — onerous assignment, non-standard receivables fund or co-investment — through to closing.
Conduct
Senior and direct conduct, with stratification and the recovery curve built by Blackhill itself, and an independent assessment of the servicer where the transaction requires one.
05Framework and references
- Typology
- Granular retail · Granular SME · Corporate
- Typical vehicle
- Direct assignment · Non-standard receivables fund
- Regulation
- CVM Rule 175/2022 · LGPD
- Indicators
- WARR · M+1 to M+36 curve · aging
This material does not constitute: (i) a public offering of securities; (ii) a legal opinion; (iii) an investment recommendation; (iv) a promise of returns; nor (v) a guarantee of any nature. Investment decisions rest exclusively with the investor, based on their own analysis and independent due diligence.
07How to start
Start a confidential conversation.
A first approach requires no documents, counterparty names or transaction data. The context in broad terms is enough for us to assess whether there is mandate fit.
- 01
Preliminary contact
You describe the context in general terms. We assess fit and come back with an initial reading.
- 02
Confidentiality
Where there is fit, an NDA is executed before any sensitive information is shared.
- 03
Analysis and mandate
With documentation available, we define the scope of work and the terms of the mandate.
Preliminary contact does not constitute a mandate, a binding proposal, a commitment to structure or any guarantee of execution. Accepting any engagement depends on prior analysis and a formal agreement between the parties.