Two overseas acquisitions in the past year have consolidated the transfer of the Bluestone Group's base from Australia to Europe, but the company continues to look for opportunities in the local market.Bluestone still has about A$1 billion of non-conforming loans and reverse mortgages in a run-off book, but these days it makes most of its money from capital and asset management.Last September, it bought Close Credit Management, a United Kingdom debt purchasing and portfolio management business whose clients include Her Majesty's Revenue & Customs. In December, it bought €350 million worth of Irish auto and equipment loans from Lloyds. The Irish deal was undertaken in partnership with Varde Partners.These deals helped Bluestone increase its net income from A$37 million in 2010/11 to $43.7 million in the year to June. Net profit rose 41.3 per cent, from $7.6 million to $10.7 million, over the same period.Bluestone's chief executive, Alistair Jeffery, who has been in Sydney over the past week to meet investors, said the company had a "twin-jet configuration". Bluestone Capital Management buys credit portfolios and Bluestone Asset Management works on an agency basis, providing portfolio management services.Jeffery said the company was in the process of turning the two areas of activity into separate companies with their own balance sheets.Despite having relocated the Bluestone head office to Cambridge, in the UK, Jeffery said he still sees Australia as an important market. Last year, Bluestone was a member of a consortium that was the under-bidder for the $5 billion mortgage portfolio that GE Capital sold to Pepper Australia.Four months ago, Bluestone launched a settlement and post-settlement mortgage-servicing operation in Australia, with Commonwealth Bank and Aussie Home Loans as its first clients. Jeffery will be pitching the service to other lenders while he is in Australia.The service uses an origination and servicing system (BOSS) that Bluestone acquired in 2006.Jeffery said: "BOSS is what allowed us to keep trading in 2009. It is a contemporary system, running on PC servers and we can do very rapid development cycles to adapt it to different markets."Bluestone is also exploring loan origination opportunities in the local market with its 17 per cent shareholder, Macquarie Group.