Capita increases managed funds to €137bn

New contract wins have helped Capita Asset Services Ireland to increase its assets under management by €8.25 billion so far this year. The total funds now being managed by its teams in Dublin, Maynooth, Belfast and Britain is now more than €137 billion.

Capita is an independent servicer of loans in Europe and is involved in business process outsourcing.

Its UK business, which reports to Capita's Dublin-based chief executive Robbie Hughes, has also enjoyed success, including winning a contract to service 250,000 mortgage accounts on behalf of the Co-Operative Bank, with balances in excess of £23 billion (€32 billion).

Capita’s clients include established financial institutions and private equity groups which have acquired portfolios of loans.

It currently manages €250 million in residential mortgage-backed loans on behalf of Dilosk since it acquired ICS Mortgages from Bank of Ireland in September 2014.

Headcount

Capita worked with Dilosk to ensure it was accredited by ratings agencies, and the book was securitised on the open market in May 2015.

“In just over three years we have grown our headcount in Ireland and the UK from less than 500 to more than 3,200 today,” Mr Hughes said. “This stems from increasing industry awareness of the experience and capabilities we have in-house as well as greater appreciation of the advantages of outsourcing business processes.”

Capita's growth began with a Nama contract in 2010 to manage out loans related with Irish Bank Resolution Corporation, which was placed into liquidation by the State in February 2013.

In 2014, it purchased Ipswich-based Crown Mortgage Management, which had a £3.8 billion portfolio of business and a proprietary system allowing Capita to assume full lifecycle administration for prime and non-conforming mortgages.

Latest accounts for Capita Asset Services (Ireland) Ltd show it made an operating profit of €3.9 million on revenues of €23.8 million in 2013.

Capita has expanded its senior team in Ireland in recent months, with key appointments including director Antoinette Dunne, head of asset management Niall Sorahan and head of business development Bryan O'Connor.

They joined head of corporate solutions Fergal Molony in the management team.

International clients

Capita’s Irish business also manages operations across 13 jurisdictions for blue-chip domestic and international clients and acts as a local partner for a number of international funds.

In the past 12 months Capita also completed the purchase of SouthWestern, which has a 1,000 strong team in Cork and Poland providing business process outsourcing and customer service management. Its clients include Fáilte Ireland, Eircom and Bord Gáis.

In addition, Capita’s Dublin team delivered the new Eircode postcode service for the Department of Communications to more than 2.2 million individual addresses.

“Capita has been strongly focused on identifying opportunities where our services can bring value to Irish organisations. private and public,” Mr Hughes said. “As Ireland enters a more assured economic footing over the coming years we will continue to invest to meet demand across fund and debt management, financial services and corporate solutions to assist clients in growing their businesses.”