PRA GROUP INC

We are a specialty finance company headquartered in Norfolk, Virginia and incorporated in Delaware. Our primary business is the purchase, collection, and management of nonperforming loan portfolios, and we are a global leader in this industry. We primarily purchase "Core" accounts, which are loans from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them. To a lesser extent, we also purchase "Insolvency" accounts, where the customer is involved in a bankruptcy or similar proceeding. As an ancillary business, we purchase and provide fee-based services for class action claims recoveries in the U.S. We are organized geographically, with principal markets in the U.S. and Europe, where we operate in 12 countries and the United Kingdom ("UK"). On a significantly smaller scale, we also operate in South America, Canada, and Australia. Each market functions under a similar debt management business model, which involves purchasing nonperforming loans and generating returns through disciplined collection strategies over extended periods, subject to globally-established parameters for capital allocation, portfolio return thresholds, and leverage. Our investment teams continuously engage with known and potential sellers, including major banks, consumer finance companies, auto finance providers, and other creditors, to identify purchasing opportunities. The types of Core and Insolvency loans we purchase include general purpose and private label credit cards, consumer loans, auto loans, overdrafts, and small business loans. When valuing these loans, we consider factors such as the asset type, age since charge-off, geographic region, sellers' selection criteria, and collections activity up to the time of sale. Nonperforming loan portfolios are typically sold through formal sales processes where bids are requested from pre-qualified potential buyers, or sometimes on an exclusive basis directly to a seller's preferred buyer.