PRA Group announces strategic partnership with Banco Bradesco
PRA Group announced a strategic partnership with Banco Bradesco S.A. In the agreement, Bradesco will purchase 65% of RCB's country-leading, nonperforming loan servicing platform in Brazil, which is currently majority owned by PRA Group. The platform will continue to be operated by RCB's founders together with Bradesco. Ownership of the existing nonperforming loan portfolios purchased by the current shareholders of RCB to date will not be part of the transaction. Additionally, the companies will create two new investment vehicles that will be majority owned by PRA Group with the remaining portion owned by Bradesco and RCB's founders. These vehicles will be the investment channels for purchasing nonperforming loans in Brazil. Both vehicles, along with PRA Group and RCB's existing nonperforming loan portfolios, will utilize RCB's servicing platform for collections. The deal is expected to close upon approval by the Brazilian Banking Authority and Antitrust Authority.