Pepper Group’s Irish subsidiary has signed a new contract with a UK banking group to provide third-party asset servicing for its residential loan portfolio.
Pepper Ireland’s deal with Lloyds Banking Group is the second asset servicing contract it has won since Pepper Group listed on the ASX in July, and is worth $8.8 billion.
It is expected that Pepper Ireland will begin servicing these assets by the end of the second quarter of the 2016 calendar year following a suitable transition process, according to the group.
Mike Culhane, joint CEO of Pepper Group, described the contract tender as a detailed and competitive process.
“Pepper’s 20 years’ experience in asset servicing, coupled with its unique and innovative approach where we service these loans as if we owned them ourselves, has been and will continue to be crucial to our success,” he said.
Pepper Group joint CEO Patrick Tuttle said contract wins like this means the company can diversify its business strategically.
“Pepper continues to capitalise on opportunities stemming from large, traditional players such as Lloyds Banking Group exiting from segments of the market that we are targeting,” he said.
Pepper Group’s loan servicing platform had $36.8 billion in total assets under management (AUM) at 30 June 2015, with the new contract to increase the current AUM by approximately $8.8 billion when boarded.