Ramco Income Fund specializing in German distressed residential mortgages to launch September 30 200
September 09, 2007
Sep 10, 2007 -- /prbuzz/ --New York, September 10, 2007~Receivable Acquisition and Management Corp. (RAMCO) has announced that it’s Bermuda registered fund, The Ramco Income Fund, specializing in the German distressed residential mortgages, plans to initiate the first closing on their Series B shares on September 30th, 2007.

The Fund’s investment objective is to generate above market and noncorrelated returns through the purchase and subsequent recovery of nonperforming (NPLs) and sub-performing (SPLs) residential mortgages in Germany. It is estimated that there is circa €100 Billion in Real Estate NPLs in Germany. Such NPLs and SPLs are acquired at a significant discount to notional value of the loan and appraised value of the underlying real estate.

The German market continues to be the most attractive market in Europe for distressed investments with Real Estate being the second most popular segment. The German market for distressed debt is the most attractive market for investors not just across Europe but globally. Despite the large portfolio sales of recent years, portfolio sales are expected to continue. With the commercial and private banks having successfully sold off their bad loans, the next waive of distressed debt transactions is expected to come from the savings banks, regional banks and credit cooperatives. The Basel II requirements for banks to back NPLs with additional capital as of January 2007 have raised investor interest by providing the necessary push for banks to sell their NPLs.

Gobind Sahney, the fund’s co-manager said: “The Sub-Prime mess in the United States mortgage market has made The Ramco Income Fund an attractive investment vehicle. German banks have already felt the impact of the US sub-Prime mess and will undoubtedly start selling even more of their distressed debt. The Ramco Income Fund is the only offshore mutual Fund of its type specializing in this market.”

About the Ramco Income Fund: The Fund: Ramco Income Fund, Ltd. (the “Fund”) is an exempted, open ended mutual fund company incorporated with limited liability in March 2004 under the Companies Act, 1981 of Bermuda (as amended).
The Fund operates as a pooled investment vehicle through which the assets of its Shareholders are invested in a wide variety of financial instruments in the distressed and delinquent asset class. The Fund is governed by its constitutive documents, consisting of its Memorandum of Association and Bye-laws.

Investment Strategy: The sole purposes of the Fund are, inter alia, (i) to acquire, own, manage, collect, liquidate, finance and dispose of the Portfolio of nonperforming and sub-performing German mortgages. It is intended that the acquired Portfolios will be resolved by (i) payments under the Loans, (ii) agreeing to early repayments or refinancing of the Loans with the Debtors, (iii) agreeing to pay-off schedules with Debtors,(iv) global restructuring of the debt with one or more Debtors or creditors and (v)in the case of Loan Receivables that are in default or terminated, and to the extent permitted by the Loans or by law, (a) effecting foreclosure
of collateral as well as other enforcement measures against the assets of the Debtors or to be applied against any amount due under the Loans and (b) repossession of the underlying collateral and subsequent sale or direct sale of the collateral. The Fund has entered into servicing agreement with Crown Westfalen, which is one of seven Moody’s and Fitch rated servicers in Europe. Westfalen also has a 50-50 joint venture with Fortis Bank. Westfalen agreement also calls for originating NPL & SPL transactions and restructuring options for debtors on behalf of the Fund. The Funds Custodian is Bank Sarasin in Basel, Switzerland.

For additional information or a Fund prospectus please contact:

John Figliolini
Vice President/Business Development
Ramco Global
First Canadian Place
100 King St. W
37th Floor
Toronto, ON M5X 1C9
Canada
Phone: 416.628.8598
E-mail: This email address is being protected from spam bots, you need Javascript enabled to view it
www.ramcoglobal.com
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