PRA Group (Nasdaq: PRAA) Company Profile

Background

Overview

PRA Group, Inc., headquartered in Norfolk, Virginia, is a publicly traded financial services company specializing in the acquisition and collection of nonperforming loans (NPLs). Established in 1996 as Portfolio Recovery Associates, LLC, the company rebranded to PRA Group, Inc. in October 2014. With operations spanning 18 countries, PRA Group has become a global leader in the NPL industry, employing over 3,100 individuals worldwide.

Mission and Vision

• Mission: To deliver nonperforming loan solutions that drive success through a long-term focus and customer care.

• Vision: To be the trusted leader, changing the world’s perception of the nonperforming loan industry.

Key Strategic Focus

PRA Group's strategic focus centers on acquiring and managing portfolios of nonperforming loans from various credit originators, including banks, credit unions, consumer finance companies, retailers, and automobile finance companies. The company emphasizes a customer-centric approach, offering affordable and flexible payment options to improve financial futures. By leveraging advanced data analytics and maintaining high compliance standards, PRA Group aims to enhance operational efficiency and expand its global footprint.

Financials and Funding

Financial Performance

• Revenue: In 2023, PRA Group reported revenue of $802.6 million, a decrease from $967 million in 2022.

• Net Income: The company experienced a net loss of $66.8 million in 2023.

Funding History

PRA Group went public on November 8, 2002, raising $50.7 million through the sale of 3.9 million shares at $13 per share. Since its IPO, the company has pursued strategic acquisitions to fuel growth, including the notable acquisition of Aktiv Kapital AS in 2014 for $880 million.

Pipeline Development

PRA Group's primary pipeline involves the continuous acquisition and management of nonperforming loan portfolios. The company focuses on expanding its portfolio through strategic purchases, aiming to enhance cash collections and operational efficiency. In 2024, PRA Group reported total portfolio purchases of $975.2 million year-to-date as of September 30, reflecting a commitment to growth and market expansion.

Technological Platform and Innovation

PRA Group leverages advanced data analytics and proprietary technologies to optimize the acquisition and collection of nonperforming loans. The company's technological platform includes:

• Data Analytics: Utilizing sophisticated algorithms to assess and predict debtor behavior, enhancing collection strategies.

• Machine Learning: Implementing machine learning models to improve decision-making processes and operational efficiency.

• Digital Platforms: Developing user-friendly digital interfaces to facilitate customer engagement and payment solutions.

These innovations position PRA Group as a leader in the NPL industry, enabling scalable and efficient operations across diverse markets.

Leadership Team

Vikram Atal
President and Chief Executive Officer
Vikram (Vik) Atal serves as the President and CEO of PRA Group, Inc. He joined the company's board of directors in 2015 and was appointed to his current role on March 27, 2023. Atal brings over 27 years of experience from Citigroup, Inc., where he held various senior executive positions, including Chairman and CEO for the North America card franchise.

Jan Husby
Chief Information Officer
As CIO, Jan Husby drives information technology and business applications at a strategic level across PRA Group's global platform. He joined the company through the acquisition of Aktiv Kapital in 2014, where he served as CIO of Europe for eight years. Husby holds a master's degree in Computer Science from Cornell University.

Owen James
Executive Vice President, Global Investments Officer
Owen James is responsible for driving PRA Group's global investment strategy and guiding the company's expansion into newer markets. With over 30 years of industry experience, he has been with PRA Group for more than a decade, leading investments in Europe and Australia.

Elizabeth Kersey
Senior Vice President, Communications and Public Policy
Elizabeth Kersey leads PRA Group’s state and federal government relations efforts, overseeing internal and external communications, public and media relations, corporate giving, and employee engagement. She has nearly twenty years of public affairs experience across various sectors.

Steve Macke
Global Operations Officer
Steve Macke oversees PRA Group’s call centers, legal recovery, digital, and insolvency operations. He brings more than three decades of industry experience, having spent his career leading all aspects of operations, including collections and default management for Citigroup.

Adrian Murphy
Global Chief Data and Analytics Officer
Adrian Murphy leads the development of cutting-edge data analytic solutions to drive business growth. He has nearly three decades of industry experience, previously serving as a partner at McKinsey & Company.

Rakesh Sehgal
Executive Vice President, Chief Financial Officer
Rakesh Sehgal is responsible for PRA Group’s global finance organization, including accounting, SEC reporting, tax strategy, funding, corporate development, and investor relations.