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Spanish Secured NPL Strategy

Exclusive access to Spain's most compelling real estate credit opportunities.

Backed by real estate collateral. Uncorrelated to financial markets. Seven years on the ground in Spain and €200M+ deployed through the SRPO Fund — Vega is a natural extension, earlier in the value chain.

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15–16%

Target net IRR

1.85×

Target money multiple

50–65%

Discount to outstanding balance

7+ yrs

Spanish on-the-ground track record

THE THESIS

The return comes from a spread, not a cycle.

Spanish banks still carry significant legacy NPL books. ECB pressure to reduce them is structural, not cyclical — a durable, multi-year pipeline of incentivised sellers. Spain permits only a restricted group of compliant, nationally-covered buyers to acquire these portfolios. Vega sits inside that group.

Each loan is acquired at 50–65% below its outstanding balance, secured by a real estate asset typically worth more than the debt itself. The return is generated through the gap between what Vega pays and what Vega recovers — not through real estate appreciation, not through rate moves, not through GDP growth.

THE THESIS

Europe's most dynamic economy. A structurally undersupplied market.

Three forces converge: an outperforming Spanish economy, a residential property market tightening under severe supply shortage, and an institutional NPL market where access is reserved for a short list of established buyers.

01

Resilient
economy

GDP growth of +5.8% (’22), +2.5% (’23), +3.2% (’24), +2.8% (’25) versus EU averages of +3.4%, +0.8%, +0.9%, +1.6%. Unemployment declining, domestic consumption expanding.

02

Real estate
tailwinds

Spanish house prices posted their strongest annual increase in 17 years in 2025 (+12.8%), following +11.3% in 2024. Supply gap: 375,000 households needed annually against ~150,000 being built.

03

An institutional
market

Spanish banks sell NPL portfolios only to a restricted list of compliant buyers. Seven years of bilateral relationships across tier-1 sellers and leading servicers translates into exclusive, off-market deal flow.

THE APPROACH

A rigorous, data-driven process. From exclusive sourcing to full resolution.

Spanish banks still carry significant legacy NPL books. ECB pressure to reduce them is structural, not cyclical — a durable, multi-year pipeline of incentivised sellers. Spain permits only a restricted group of compliant, nationally-covered buyers to acquire these portfolios. Vega sits inside that group.

Each loan is acquired at 50–65% below its outstanding balance, secured by a real estate asset typically worth more than the debt itself. The return is generated through the gap between what Vega pays and what Vega recovers — not through real estate appreciation, not through rate moves, not through GDP growth.

01

Sourcing & appraisal

Off-market portfolios from tier-1 Spanish banks via seven-year bilateral relationships. ~90% of pipeline sourced through direct one-to-one negotiations.

02

Acquisition & due diligence

Full legal, financial, and collateral DD on every loan. Acquisition only where portfolio clears minimum IRR threshold at 50–65% discount to outstanding balance.

03

Mediation & resolution

Dedicated resolution manager per loan. Negotiated borrower settlement is the primary route (~70% of cases); judicial track runs in parallel from day 1.

04

Foreclosure & exit

Where settlement fails, collateral is foreclosed and sold via local agent network at market price. Light capex (<€3k average). 18–22 month post-repossession hold.

RETURN ARCHITECTURE

Capital returned in four years. The next two are upside.

Vega Constellation — Return Waterfall Base case LP cash flows. Capital called year 1, full capital returned by year 4, profit distributions years 5 to 7 to cumulative 1.85 times money multiple. 1.85× 1.40× 1.00× 0.50× 0.00 −1.00 Year 1 reinvest Year 2 reinvest Year 3 +1.00 Year 4 +0.40 Year 5 +0.35 Year 6 +0.10 Year 7 1.85× CAPITAL CALL CUMULATIVE DISTRIBUTIONS Capital call Capital return Profit distribution Reinvestment period

On a €1M commitment, Vega targets €850k of profit over seven years — generated entirely from the spread between purchase and recovery.

Year 1 deploys capital. Years 2–3 recycle early resolution proceeds into new acquisitions. Year 4 returns full capital. Years 5–7 deliver cumulative DPI of 1.85× with a net IRR of ~15.7%.

Fund terms

A summary of the Fund's principal terms.

Fund name
Vega Constellation Sicav-Raif SCAIberia Opportunities Fund I
Reference currency
EUR
AIFM
IRE AIFM S.à.r.l.CSSF-regulated
General Partner
Vega Constellation Management S.à.r.l.
Fund Administrator
Alcyon S.A.
Fund Auditor
Atwell Luxembourg
Fund Custodian
Creand — Banque de Patrimoines Privés
Eligibility
Well-informed investorsQualified and professional investors
Minimum investment
€250,000
Management fee
1.20%Early Birds
Target returns
15–16%Net of fees
Performance fee / Hurdle
15% above 8% hurdleEuropean waterfall with GP catch-up · Early Birds
Entry fee
0.5% to 3%
Target size
€100m
Final closing
No later than 18 monthsAfter 1st closing
Fund term
7 years+ 2 discretionary annual extensions
Investment period
3 years from First Closing
Harvesting period
4 years+ 2 annual extensions
NAV calculations
QuarterlyAudited once per year

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