Japanese NPL Portfolios

In 1999, The Picerne Group, through relationships with Japanese bankers living in the U.S., learned of the opportunity to acquire non-performing loan (“NPL”) portfolios in Japan from the Bank of Tokyo Mitsubishi.

Picerne Capital was formed to acquire NPL portfolios. The acquisition of the first NPL portfolio closed in March, 2000 at a purchase price of $50 million.  As a result of the investment, The Picerne Group’s business expanded from U.S. based real estate development and investment to include Japanese NPL investments.  

The Picerne Group’s early entrance into the non-performing loan market and strong asset management strategies resulted in a highly successful program.  The Picerne Group realized net profits of $75 million on the initial portfolio and developed the reputation, relationships and platform to expand to investments with other Japanese financial institutions. 

Picerne Capital established itself as a leader in the Japanese NPL market, closing fourteen successful portfolio purchases from a variety of Japanese financial institutions.  These portfolios encompassed properties in Canada, Europe and Japan, in addition to the U.S. 

Picerne Capital subsequently liquidated its Japanese NPL portfolio by 2004, realizing exceptional returns for its principals and investors.