Royal Park Investments

Royal Park Investments (RPI) is a Belgian bank and special-purpose vehicle created at the end of 2008 out of the former Fortis group. It was established as part of the Belgian government's measures during the break-up of Fortis-ABN AMRO in the wake of the credit crisis, in order to ring-fence problem loans worth EUR 11.2 billion from Fortis Bank. RPI is a so-called 'bad bank': its purpose was to acquire and manage a portfolio of assets from the former Fortis Bank, isolating them from the rest of the group. The company is owned by a consortium of three shareholders: Ageas holds 44.7%, the Belgian State through the Federal Participation and Investment Company (FPIM) holds 43.5%, and BNP Paribas holds 11.8%. This ownership structure reflects the parties that were involved in the rescue and dismantling of Fortis during the 2008 financial crisis. In 2013, Royal Park Investments was able to sell its entire portfolio to the American Lone Star Funds and the Swiss Crédit Suisse, which paid EUR 6.7 billion for it. This represented an intrinsic value of EUR 2.3 billion and therefore a gain of more than EUR 600 million, which could be distributed among the shareholders. After the sale, Royal Park Investments continued to exist in order to handle the many legal proceedings that the bank had initiated against American and European financial players for fraud by Fortis Bank. Through various settlements, Royal Park Investments has generated additional money for its shareholders. The entity thus evolved from an asset-holding bad bank into a litigation and recovery vehicle for its owners.

Royal Park Investments (RPI) was created at the end of 2008 out of Fortis, the Belgian-Dutch financial group that was rescued and dismantled during the global credit crisis. As part of the Belgian government's measures during the break-up of Fortis-ABN AMRO, RPI was set up to ring-fence problem loans worth EUR 11.2 billion from Fortis Bank. The bank is a so-called 'bad bank', and its purpose was to carry out the acquisition of an asset portfolio from the former Fortis Bank. The ownership of RPI reflects the parties involved in the Fortis rescue: Ageas holds 44.7%, the Belgian State through the Federal Participation and Investment Company (FPIM) holds 43.5%, and BNP Paribas holds 11.8%. In 2013, Royal Park Investments was able to sell its entire portfolio to the American Lone Star Funds and the Swiss Crédit Suisse, which paid EUR 6.7 billion for it. This came to an intrinsic value of EUR 2.3 billion and therefore a gain of more than EUR 600 million, which could be distributed among the shareholders. After the sale, Royal Park Investments continued to exist in order to handle the many legal proceedings that the bank had initiated against American and European financial players for fraud by Fortis Bank. Through various settlements, Royal Park Investments has generated additional money for its shareholders.

• 2013

  RPI sells its entire portfolio to the American Lone Star Funds and the Swiss Crédit Suisse for EUR 6.7 billion, representing an intrinsic value of EUR 2.3 billion and a gain of more than EUR 600 million.

• 2008

  Royal Park Investments is created at the end of 2008 out of Fortis, as part of the Belgian government's measures during the break-up of Fortis-ABN AMRO, to ring-fence EUR 11.2 billion of problem loans from Fortis Bank.

• After the sale, RPI continues to exist to handle legal proceedings against American and European financial players for fraud by Fortis Bank, generating additional money for shareholders through settlements.

A state-backed 'bad bank' and special-purpose vehicle focused on winding down and litigating legacy Fortis credit exposures.

• Problem loan portfolio management

  Management and winding down of EUR 11.2 billion of problem loans ring-fenced from Fortis Bank.

• Asset acquisition and disposal

  Acquisition of an asset portfolio from the former Fortis Bank and its later sale to Lone Star Funds and Crédit Suisse.

• Litigation and recovery

  Handling of legal proceedings against American and European financial players for fraud by Fortis Bank, with settlements benefiting shareholders.

1. 1Home - Royal Park Investmentsroyalparkinvestments.com
2. 2A propos de RPI - Royal Park Investmentsroyalparkinvestments.com
3. 3Royal Park Investmentswikidata.org
4. 4Royal Park Investmentsnl.wikipedia.org