Former Apax partner to run UK bailout scheme

Stephan Wilcke, a former Cairn Capital adviser and partner at Apax Partners, has been appointed as chief executive of the UK Government agency that runs the Asset Protection Scheme, the state-sponsored safety net that provides banks with a form of insurance against losses on assets such as leveraged loans.

Wilcke joins the Asset Protection Agency (APA) from Cairn Capital, a credit focused asset manager, where he advised public sector clients on their response to the credit crisis, a statement from the Treasury said.

At Apax Partners, he was the private equity firm’s first financial services specialist and went on to become a partner and head of European financial services.

“The Asset Protection Scheme is a central part of the Government's efforts to stabilise the financial sector and promote the flow of credit in the economy,” said Paul Myners, financial services secretary to the Treasury, in a statement.

The scheme, which is designed to promote stability by giving banks confidence in the value of their assets, includes around £300 billion-worth of assets from The Royal Bank of Scotland’s portfolio, including corporate and leveraged loans, commercial and residential property loans and structured credit assets. Lloyds TSB has placed approximately £250 billion in the system, which includes around £150 billion of leveraged finance and commercial real estate loans.