GI Partners backs launch of German distressed mortgage investor

The investment firm is to invest in mortgage-backed assets and the mortgage banking sector in Germany, Austria and Switzerland. Founders Keith Fischer, Robert Grassinger and Ulrich Kastner have expressed a belief that there is significant pressure on the banking industry to strengthen balance sheets and reduce exposure to non-core and non-performing assets, which they claim  will lead to investment opportunities across the mortgage and real estate sectors.

Elystan’s strategy is to acquire these non-performing loans, in addition to mortgage-backed securities and real estate portfolios, with an intention to consolidate those assets.

Elystan has also been working with GI Partners since June of last year to acquire a bank to grow a mortgage lending business.

Fischer has had roles at Citibank, Orion Capital Managers and Lehman Brothers; Grassinger has had roles within Württemberger Hypo and Hypo Real Estate; and Klastner has served at Deutsche Bank, Dresdner Kleinwort Wasserstein and Lehman brothers.

Mark Tagliaferri, managing director at GI Partners, said, “We are delighted to be working with the three principals and backing the Elystan platform. Their strong industry experience combined with their strategic vision of opportunities in the German market make them an ideal partner for GI Partners. We look forward to building Elystan into a significant business in the German mortgage banking sector.”

Based in London and Menlo Park, GI Partners specialises in control-orientated investments in asset-based businesses in the US and Western Europe. GI Partners III, the firm’s third fund, closed on $1.9bn in October 2009.

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