Principal Invest infrastructure 

Principal Invest infrastructure are funds incorporated under the laws of Luxembourg and will be established on a case-by-case basis such as Principal Residential Operating Platform Evaluating Receivables 1 S.à.r.l. Using the Principal Infrastructure these asset secured debt positions will be valued and monitored on-going.

The objective of Principal Invest infrastructure is to assume asset secured debt positions with respect to (revolving) portfolios of residential & commercial mortgage loans, (secured) consumer credits, and account, factor and/or trade receivables using securitisation techniques.  

Investment Committee and Investment Advisor

The investment committee is responsible for (a) ratifying the investment policy of each individual fund of Principal Invest and any amendment of the same, and (b) verifying that each proposed Investment complies with the guidelines laid out in the investment policy for each fund.

The investment advisor is Principal Asset Management Company B.V., a limited liability company established under the laws of the Netherlands.

Principal Infrastructure uses a proprietary Platform which integrates an IT system with a legal and settlement infrastructure that facilitates:

• Daily automated processing of:

• receivables purchase / repurchase: mitigation of legal risk by having daily registration of purchased receivables and creating the opportunity of perfectly matched funding and liquidity;

• collections and write-offs settlement: mitigates commingling risk;

• settlement of credit notes and invoice adjustments: mitigates dilution risk;

• receivables valuation: generates Expected Loss and offers the opportunity to adjust enhancement levels;

• Stand-by Receivables Servicer: active within 24 hours using a captive receivables servicing platform;

• Liquidity calculation: generates Expected Weighted Average Life and minimises liquidity support.

Principal Infrastructure is linked to a captive pan European credit management platform (Receivables Servicing Platform) branded C&L Receivables Management N.V. (C&L)

An Interface between Principal Infrastructure and the Receivables Servicing Platform assures:

C&L Co-sourcing

• Management of customer relations;

• Optimising working capital and reducing DSO;

• Query management.