Malta Special Situations
01 October 2025 /NPL Malta
Transaction Snapshot
Polymath & Boffin (P&B) acted as a first mover in Malta’s special-situations market, leading the acquisition of a book of non-performing loans (NPLs) with c. €200 million gross book value and over 1,000 credit positions sourced from multiple banks and private creditors. This followed a leading purchase of an NPL book from Bank of Valletta, Malta’s largest bank. The business is executed through P&B’s Malta-dedicated special opportunities subsidiary, 3514 Capital.
Our Mandate
Through 3514 Capital, P&B’s remit was to acquire, manage and resolve NPL positions while applying a positivity-driven servicing culture aimed at enabling growth and restructuring even within non-performing environments.
Solution Architecture
Portfolio acquisition and servicing. P&B, via 3514 Capital, consolidated NPL positions across lenders and private creditors into a managed book.
Constructive borrower engagement. The servicing approach focused on practical restructuring paths designed to resolve historic credit issues.
Market Infrastructure. Activity was organised under a Malta-dedicated vehicle (3514 Capital) to concentrate expertise and execution locally.
Outcome & Benefits
Funds under management: The positive special-servicing approach led to outstanding performance for the funds managed by 3514 Capital.
Creditor Resolutions: Numerous creditors resolved decades-old issues through negotiated outcomes.
Debtor Relief: Debtors exited their debt burden with excess equity remaining.
Bank capital: Banks offloaded long-standing non-performing credit, freeing up capital and boosting regulatory capital.
Profitability: Record profit was reported by banks in the subsequent years, with profitability growth noted as pro-rate to freed-up capital following the disposal of impaired assets.
Why It Matters for Investors
Scale and diversification. A single platform managing ~€200m GBV across 1,000+ positions provides diversified exposure to Malta’s special-situations landscape.
Execution certainty. A Malta-dedicated subsidiary (3514 Capital) anchors sourcing, workout and resolution locally.
Impact orientation. A positive, restructuring-oriented servicing culture supports outcomes for creditors and debtors while contributing to system-level balance-sheet repair.
Polymath & Boffin’s Malta Special Situations programme demonstrates an execution model that channels specialist capital and constructive servicing to unlock value across complex, long-dated credit positions—delivering outcomes for lenders, borrowers and the wider market.
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