Distressed investing refers to the practice of purchasing assets that are in financial distress, such as companies or properties that are in default or foreclosure. The goal of distressed assets investing is to purchase these assets at a discounted price and then turn them around by restructuring, repositioning, or selling them for a profit.
There are several types of distressed assets, including real estate, mortgages, bonds, and company stocks. Real estate investors may purchase distressed properties at a discount, such as foreclosed homes or commercial properties in default, with the goal of renovating and reselling them at a higher price. Bond investors may purchase distressed bonds, which are bonds that have defaulted or are in danger of defaulting, with the goal of receiving a higher return on their investment than they would from a non-distressed bond. Similarly, stock investors may purchase distressed stocks, which are stocks of companies that are in financial distress or bankrupt, with the goal of turning around the company’s fortunes and selling the stock at a higher price.
Distressed investing is considered a high-risk, high-reward strategy and it is typically only suitable for experienced investors with a high tolerance for risk. Due to the complexity and uncertainty of distressed assets, investors need to conduct a thorough analysis of the assets and their underlying businesses, including a detailed examination of their financial statements and cash flow analysis.
EDS Distressed Private-Equity Investing Opportunities
EDS leverages its proprietary global investment recovery and asset recovery and distressed assets services platform to acquire non-performing loan portfolios from secured creditors and non-essential and overlapping real and moveable assets through corporate consolidations and restructuring transactions as well as special assets and special situations from operationally challenged and financially distressed companies. We invite institutional and well-qualified private investors to participate alongside us as equals in such Distressed Private-Equity Investing opportunities.
EDS Distressed Brand Investments & Acquisitions
Whether independently or as part of broader, multi-asset dispositions, we acquire, cultivate, and reimagine—dormant, underdeveloped, or in-transition intellectual property. Our vast experience buying, selling, and managing special assets and special situations over more than 40 years informs our strategy and helps us inject new life and value into non-performing and underutilized brands.
We would welcome the opportunity to bring this level of distressed investing expertise to you.