Investment
Covest invests actively in distressed assets, without limiting itself to particular asset categories – from non-performing loans to distressed companies.
Specifically for the purchase of distressed companies we pursue the following investment profile:
Investment strategy:
Value increase:
Profile of expertise:
Life cycle:
Deal flow:
-
„Control-oriented“ (activ):
Covest undertakes classical majority shareholdings (equity / distressed equity)
or
buys bank loans and other receivables (distressed debt) and converts them into controlling equity (debt-to-equity swap)
and does so in a „friendly“ or „hostile“ deal, depending on the opportunity“
- Active role in management / financial and operational restructuring of the respective partly-owned subsidiary
- Many years of entrepreneurial experience as managing director or manager and expertise in corporate and/or turnaround management
- 2 – 5 years
- See chart on „Deal-Flow“
-
„Non-Control“ (passive):
Purchase of minority shareholdings in the crisis company (often listed) or of large existing debts (non-performing loans)
- Shares and/or debts are sold on at the best possible moment
- Experts on the capital markets from investment banks, expertise in securities trading
- 6 – 18 months
- Via capital markets and major banks
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Corporate Finance
