US debt group AB CarVal Investors has made a €75 million profit in the space of three years from flipping distressed loans it bought from Ulster Bank.
In August 2023, Ulster Bank sold most of its remaining loans, which consisted of performing and non-performing personal and commercial debt with a gross value of €694 million to AB CarVal Investors.
The US investment manager paid €268 million to acquire the loans through a vehicle called Elmscott Property Finance Designated Activity Company.
New financial accounts for 2025 published by the company show Elmscott Property Finance has made proceeds of €228.2 million from reselling loans it acquired from Ulster Bank and made a combined €75.3 million profit from these deals.
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The filings showed AB CarVal completed a €22 million transaction in August 2025 to sell a portion of the portfolio of loans it acquired three years ago. “The gain on the sale amounted to €5.5 million,” a note in the directors’ report said.
The directors added that following the end of the financial year, it sold another portion of its loans in April 2026 for €79 million, which included an estimated gain of €30.3 million.
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Last year, the first set of accounts for Elmscott Property Finance, which covered 2024, said AB CarVal sold some of the portfolio of loans for €127.1 million in August 2024. Accounts for Elmscott Property Finance said the company made a €39.4 million gain on that sale.
In addition to the gains made on resale of loans, Elmscott Property Finance has also collected €143.6 million of repayments connected to the loan portfolio since 2023.
Last year, the company revised upwards the value of loans it has yet to recoup by €34.5 million, which means that the company’s balance sheet has valued the remainder of loans that can be collected at €61.4 million.
AB CarVal did not respond to a request for comment.
The gross value of €694 million attached to the Ulster Bank loans bought by AB CarVal referred to the carrying value of the portfolio on the banks balance sheet as of the end of 2022, which is lower than the original value of the loans.
AB CarVal acquired the loans from Ulster Bank as the lender was preparing its exit from the Irish market. The US distressed debt manager previously acquired a portfolio of €800 million of non-performing mortgages from Ulster Bank in 2020.
AB CarVal was among the most prolific purchasers of distressed Irish debt in the aftermath of the global financial crash, acquiring non-performing loans valued at billions of euro.
It purchased loans connected to the Irish Banking Resolution Corporation’s (IBRC) Project Stone loan portfolio, which was valued at a combined €6.85 billion, and a collection of 5,000 loans called Project Poseidon that included assets like the Lyrath Estate Hotel in Kilkenny and the Regency Hotel in Dublin.
The Minneapolis-based firm was one of the first foreign funds to move on Ireland post-financial crash when it bought loans linked to PTSB. The company has continued to use its Irish operation as a hub to manage distressed debt in other parts of Europe.
