FORMER BANK chief executive Mark Duffy yesterday launched a new business aimed at creating and profiting from a multibillion-euro Irish portfolio of property-linked loans.

Mr Duffy and his partner Kevin Warren – co-owners of Asset Resolution Corporation (Arc) – said they had expressions of interest from international pension and insurance funds, but would not comment on reports that they have up to €3 billion available to spend. They hope to buy the loans from foreign-owned banks in the Irish market.

Details of Arc were first revealed in The Irish Times last Saturday.

Mr Warren, founder of Warren Private Clients, which manages funds worth €2.5 billion, said the expected return would vary according to the type of property, but for “quality assets” the funds would be looking for a 15 per cent return, including capital appreciation, over seven to 10 years. For more “risky” assets they would be looking for more than 20 per cent.