Iberia Opportunities Fund I · Luxembourg RAIF · Spanish NPL
The return is in the spread, not the cycle.
Secured non-performing loans acquired at 50-65% below outstanding balance. Seven years of bilateral relationships with tier-1 Spanish banks. Capital returned in four years; the next three are upside.
15–16%
Target net IRR
1.85×
Target money multiple
50–65%
Discount to outstanding balance
7+ yrs
Spanish market track record
Credit thesis
How the return is actually generated.
Vega does not speculate on asset prices, interest rates, or GDP growth. The return is arithmetic: the gap between what is paid for a loan and what is recovered from the borrower or the collateral.
Acquisition price
35-50c
On the euro of outstanding balance. Off-market portfolios from tier-1 Spanish banks under bilateral agreement.
THE SPREAD
Recovery value
70-100c
Negotiated borrower settlement or foreclosure and sale of Spanish real estate collateral.
01
A structural and recurring seller
The ECB’s ongoing pressure on European banks and financial institutions to reduce non-performing loan ratios is regulatory in origin, not driven by balance sheet stress. Spanish banks are motivated sellers with a multi-year pipeline. This is not a cyclical opportunity that closes when credit conditions normalize, the structural pressure to de-risk is durable.
02
Secured by real assets
Every loan in the portfolio is secured by Spanish real estate collateral. In the majority of cases, the collateral value exceeds the outstanding balance. This means that even in a scenario of borrower default and prolonged foreclosure, the recovery path is a physical asset sale, creating a hard floor on recovery.
03
The return is uncorrelated to financial markets
Because the return is generated through loan resolution, not asset appreciation, the strategy carries negligible correlation to equity or credit market volatility. A widening of credit spreads, a correction in listed equities, or a rise in interest rates does not impact the recovery value of secured residential loans purchased at deep discounts.
04
Access is structurally restricted
Spanish regulation permits only a narrow group of compliant buyers to acquire NPL portfolios from domestic banks. Seven years of bilateral relationships with tier-1 sellers and leading servicers has positioned Vega inside that restricted universe, with approximately 90% of pipeline sourced through direct, off-market negotiations.
Market context
Why Spain.
Why now.
The credit thesis functions independently of the macro backdrop, but Spain’s current configuration is unusually favourable. Three structural forces reinforce the investment case without being necessary conditions for it.
01
Resilient
economy
GDP growth of +5.8% in 2022, +2.5% in 2023, +3.2% in 2024 and +2.8% in 2025 versus EU averages of +3.4%, +0.8%, +0.9% and +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 approximately 150,000 being built.
03
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.
Investment approach
From sourcing to full resolution.
A four-stage process applied consistently across every loan, with dedicated resolution management from day one of acquisition and a parallel judicial track running from the outset.
01
Sourcing & portfolio appraisal
Off-market access to NPL portfolios from tier-1 Spanish banks through seven years of bilateral relationships. Approximately 90% of deal flow is sourced through direct one-to-one negotiations, not competitive auction processes. Portfolios are screened against minimum IRR thresholds before any due diligence commitment.
Key metric
Approximately 90% of pipeline sourced off-market. Bilateral agreements with servicers including tier-1 national operators spanning residential, commercial and land collateral.
02
Acquisition & full due diligence
Legal, financial and collateral due diligence is conducted on every loan before acquisition, not on a sample basis. Portfolio acquisition proceeds only where the full book clears the minimum IRR threshold at a 50-65% discount to outstanding balance. Concentration limits apply by geography, collateral type and borrower segment.
Discipline
Acquisition only where portfolio-level IRR is achievable at the acquisition price. No partial or expedited due diligence. Full collateral valuation through local certified appraisers.
03
Mediation & borrower resolution
A dedicated resolution manager is assigned to each loan at acquisition. The primary resolution route, negotiated borrower settlement, accounts for approximately 70% of outcomes. Judicial proceedings are initiated in parallel from day one, ensuring that the foreclosure track is always advancing and is never opened late as a fallback.
Primary route
Approximately 70% of resolutions via negotiated settlement. Judicial track runs concurrently from acquisition to eliminate timeline risk in the foreclosure path.
04
Foreclosure & collateral exit
Where settlement fails, collateral is foreclosed and sold through Vega’s local agent network at market price. Average capex prior to sale is kept below €3,000. The post-repossession hold period is typically 18-22 months. Sale proceeds are distributed to investors during the harvesting period.
Efficiency
Sub-€3k average capex. 18-22 month average post-repossession hold. Sale via local residential and commercial agent networks.
TEAM
Seasoned professionals supported by strong advisors.
A core operational team combining real estate credit, NPL execution, investment banking, servicing and risk experience, supported by senior strategic advisory and external AIFM oversight.
In addition, the Fund has appointed IRE AIFM Hub as external AIFM, supervising valuation, portfolio and risk management. The AIFM is directly regulated by the Luxembourg regulator (CSSF), providing institutional-grade oversight and compliance.
Core operational team
Aarish Patel, MBA
Co-investment manager
20+ years’ experience in real estate credit and equity, with a focus on NPLs and structured finance. Formerly led Encore Capital’s secured assets division (€500M portfolio) and originated/executed 20+ NPL transactions across Spain and Portugal.
Core operational team
Louis Moncheur, CFA
Co-investment manager
11 years of experience in investment banking and alternative investments. Manager of a Spanish real estate and NPL strategy since 2022, participating in 20+ transactions (€200M+) across sourcing, due diligence, execution and monitoring.
Core operational team
Ravi Lachmandas
Managing Director - Spain
Over a decade across investment and servicing. Recently served as COO, then CIO at one of Vega’s key partners in Spain, playing a key role in scaling operations and investment strategies. Based in Madrid, spearheading operations and growth in Spain.
Core operational team
Florent Humbert, CFA
Investment associate
6 years of experience in risk and alternative investments. Responsible for financial modeling, underwriting and monitoring, supporting the full execution of 15+ real estate and NPL transactions.
Senior advisor
Rolf Sickman
Partner & strategic advisor
Founder of an asset management firm specialized in alternative strategies. 30+ years of experience in real estate, bonds, equities and derivatives. Managed two family offices with AUM above €1 billion, bringing strategic vision and institutional relationships.
RETURN ARCHITECTURE
Capital back in year four. The next three are upside.
On a €1M commitment, Vega targets €850k of profit over seven years — generated entirely from the spread between purchase and recovery.
The fund’s cash flow profile is front-loaded with reinvestment and back-weighted with distributions. On a €1M commitment, Vega targets €850k of profit over seven years, generated entirely from the spread between purchase price and recovery.
Fund terms
Principal terms of the Iberia Opportunities Fund I.
A Luxembourg RAIF structure reserved for well-informed investors. Minimum commitment €250,000. Principal terms summarized for initial review.
Fund name
Vega Constellation Sicav-Raif SCA
Iberia 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 investors
Qualified 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% hurdle
European waterfall with GP catch-up · Early Birds
Entry fee
0.5% to 3%
Fund term
7 years
+ 2 discretionary annual extensions
Investment period
3 years from First Closing
Harvesting period
4 years
+ 2 annual extensions
NEXT STEP
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