Our first fund with the primary goal being to invest in UTP corporate loans and/or receivables from target companies that are struggling financially but have good prospects for recovery.
Such loans can be contributed by banks and other financial entities, purchased directly or granted to the target companies by the fund, which can also require residual equity stakes. The single-strategy fund will issue different classes of units: Credit Units, which are typically subscribed by banks and released through the transfer and/or contribution of loans; Funding Units, which are subscribed by professional investors and released through cash payments, partly to support turnaround programmes for target companies and thus support the best strategy to return to a solid credit position.
Concentrating a significant portion of a target company's debt in the fund, combined with the organic management, helps to improve and speed up restructuring projects
Holding an increased share of a company's debt makes it possible exercise effective governance
The investment team has distinctive know-how in managing loans, and specific expertise in corporate finance, M&A, strategy and private equity
The fund becomes the new counterparty for the debtor, helping to move on from positions with previous creditors (lending banks) that might have deteriorated
The combination of transferring loans and cash acquisitions produces a balanced approach that maintains significant upsides