Mediocredito Europeo (“MCE”) is an Italian-based financial institution that originates cessione del quinto dello stipendio, or “CQS” loans, to Italian consumers. To obtain a CQS loan, the borrower, often a public employee or pensioner, pledges up to one fifth of their salary or pension (the meaning of “cession del quinto dello stipendio”) for up to 10 years, and the pledged amount is paid by the borrower’s employer or pension plan directly to MCE. MCE obtains (at borrower’s expense) life and employment insurance on the loans to mitigate the risk of loss. The company is headquartered in Rome, with branches in Milan, Naples, and Syracuse in Italy. MCE has a secured warehouse financing line in place with a large global bank and an Italian bank, and will complete its first public term ABS transaction in 2018.
The company developed out of the Ktesios platform which was founded in the early 1990’s. Seer-managed funds first invested in MCE in 2017, and took over 99% ownership in 2017. MCE is licensed by the Bank of Italy as a financial institution under the recently adopted Section 106 licensing regime.