Distressed assets private equity refers to the practice of investing in companies or assets that are in financial distress, such as those in bankruptcy or receivership. Distressed assets private equity firms typically buy these assets at a discounted price, with the goal of turning them around and realizing a profit through restructuring, operational improvements, or a sale of the assets.
Distressed assets private equity firms typically focus on the following types of investments:
- Distressed debt: Investing in the debt of companies that are in financial distress, such as bonds or loans.
- Turnaround investments: Buying companies or assets that are underperforming but have the potential for improvement.
- Special situations: Investing in companies or assets that are undergoing special situations such as mergers, acquisitions, or divestitures.
- Distressed real estate: Investing in real estate properties or portfolios that are in distress, such as those in foreclosure or default.
Distressed assets private equity firms typically have a team of professionals with experience in distressed investing, including investment bankers, turnaround professionals, and operational experts. They may also work with other professionals, such as lawyers and accountants, to navigate the legal and financial complexities of distressed investing.
The investments in distressed assets are usually high-risk, high-return investments, and the private equity firms usually target a return on investment of 20% or more.
EDS Distressed Private Equity
EDS leverages its proprietary global investment/asset recovery and distressed assets services platform to acquire and/or control non-essential and overlapping capital assets through corporate consolidations and restructuring transactions, special assets and special situations from operationally challenged and financially distressed companies, and non-performing loan portfolios from secured creditors, and we invite institutional and well-qualified private investors to participate alongside us as equals in such Distressed Asset Private-Equity Investing opportunities.
EDS Private-Equity Investing / M&A Advisory
Running and growing a company is a complex process requiring expert planning, advice, and execution. In committing its own funds, EDS does not act as a broker but rather as a value-added partner—one who, together with its affiliates, has the ability to bring to the table the funds and expertise needed to realize almost any given type of project. Our seasoned professionals provide our portfolio companies and advisory clients with a broad range of value-creating—monetizing advice and services. This includes growing the company through strategic alliances and joint ventures from within our family of portfolio companies.
EDS affords clients the opportunity to benefit from our billions of dollars in transactional and strategic advice and value-creation services in mergers and acquisitions, financing, and risk-management transactions. As a boutique investment bank, EDS is not engaged in securities underwriting, trading, or certain other activities conducted by traditional investment banks. However, we provide a broad range of research and advisory services for public and private companies.
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