The study is based on data from economic and company sources as well as interviews with senior-level contacts in the market. It includes analysis of relevant economic indicators – such as total consumer debt, unemployment levels and debt write-off rates – and more specific factors including levels of personal insolvencies, the attitudes of consumer creditors to the concept of debt sale and the discount to face value typically paid for debt. The analysis of historical trends and forecasts is anchored in this information.
It is intended for debt purchasers themselves as well as private equity and other investors, banks, analysts, consultants and other parties with interests in the industry.
The study concludes that, having been impacted by the credit crunch, which caused the fast-growing market to stall and reverse in 2009, industry revenues will recover to reach around £900m during 2012.
Future growth appears supported by the recent successes of several of the large debt purchasers in raising further capital and reported recovery in the level of purchases being completed.
However, some uncertainties remain, such as the risk that slow economic recovery with continued high unemployment could lead to consumers reducing their borrowing levels resulting in less debt being put up for sale combined with a deteriorating collection environment.
Furthermore, the market remains competitive with many smaller operators bidding for portfolios alongside the big six specialists.
Findings from the study are presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
For more information please contact Frank Proud on +44 20 7100 7239 or +44 7904 486 525 or email frank.proud@
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