KRUK announces changes to its organisational structure

In order to implement its Strategy for 2025–2029 more effectively and prepare for further growth in the coming years, the KRUK Group is seeking to adjust its organisational structure by separating operational and investment activities and by obtaining, for KRUK S.A. as a listed company, the status of an Alternative Investment Company (Alternatywna Spółka Inwestycyjna or ASI).

“Over the years, the importance of investment activity within the KRUK Group has increased significantly. We therefore considered what Group structure would best ensure the achievement of our strategic objectives and support further growth,” explained Piotr Krupa, CEO of KRUK S.A. “Adjusting the organisational structure and obtaining ASI status are intended to support the delivery of our strategic objectives even more effectively. This step will enable better risk management by increasing transparency and reducing the risk of conflicts of interest, enhance the efficiency of investment and operational processes, and strengthen investor protection through supervision by the Polish financial services authority KNF and a depositary. At the same time, through the ASI we will strengthen our access to financing sources and broaden the scope for their diversification.”

The KRUK Group will continue its core business within the new legal structure, while the adjustment will also create opportunities to invest in new types of assets.

“We reaffirm and consistently implement our Strategy for 2025–2029. Our base scenario assumes organic growth and investments in debt portfolios of approximately PLN 15 billion over the Strategy period. We are considering entering new markets, such as the United Kingdom and the United States. We are also open to additional growth opportunities in the financial services sector beyond investments in debt portfolios, particularly in Poland and Romania, for example through investments in technology companies that provide services to the financial sector,” said Piotr Krupa. “Our intention is to invest approximately PLN 200 million in new types of assets over a period of several years. In the Management Board’s view, this will translate into additional benefits for investors.”

One of the stages of the project involves the establishment of an Alternative Investment Company (Alternatywna Spółka Inwestycyjna or ASI), as well as the separation of operational activities in Poland (primarily those related to debt management and the provision of intra-Group services) and the separation of the part of financial activities related to the issue and servicing of prospectus-based bonds, which, in accordance with the restrictions arising from Article 8a(4) of the Polish Investment Funds Act, an ASI may not hold.

“For me, this represents another stage in KRUK’s organisational development – an evolutionary adjustment of our organisation to the business we conduct and the scale of our investments. Over its 28-year history, KRUK has undergone several stages of transformation, initially operating as a debt servicing company, then investing in debt portfolios and servicing them using its own resources, before subsequently entering new markets. A few years ago, we established the position of Chief Executive Officer at KRUK S.A. Today, we are taking steps to formally separate the operational activities and become an investment entity,” said Piotr Krupa. “In the target structure, KRUK S.A. would become a listed alternative investment company operating as KRUK ASI S.A. The shareholders of KRUK S.A. will remain shareholders of the Company, and the position of bondholders and lenders will not deteriorate. Supervision by the KNF and the requirement to appoint a depositary will further strengthen the protection of investors and creditors. We are commencing a process that may take approximately two years and will require a number of formal and legal steps, including obtaining approvals from the KNF, corporate approvals from the Supervisory Board and the General Meeting, opinions from the relevant tax administration authorities, as well as appropriate arrangements with our business partners. In my view, and that of the entire Management Board, the organisational and legal changes will enable more effective implementation of the Strategy for 2025–2029 and prepare the Group for further growth in the scale of its business after the Strategy period,” Mr Krupa added.

An additional Management Board commentary on the organisational and legal change is available in a recording published on the corporate website: Investor Relations in the “Video” section.The presentation is available here: KRUK Group - organisational structure adjustment .