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Like classic private equity, we take control of the business. In fact, we only invest in businesses where complete board and management control can be achieved at the time of the investment. 3 Degrees will then seek to grow the business and exit at a multiple of capital invested by growing revenues and enhancing margins.
However, distressed private equity entails less risk in that we will invest and take control by purchasing most or all of a company's outstanding debt, at a discount, rather than through an outright purchase of the equity.
We pursue a relatively broad mandate by investing in distressed debt, distressed real estate and a diverse range of companies experiencing financial or operational difficulty. Within this large universe, we focus on companies and assets that are fundamentally sound, yet overleveraged, overlooked and often in need of capable management.
We avoid widely publicized auctions in favor of individual assets and small portfolios that are sourced via our proprietary relationships. A majority of our investments are sourced from regional commercial banks, wherein the bank has either completed, or about to complete a foreclosure, but does not have the skills, resources or inclination to manage the asset. Our deal flow pipeline is robust and frequently inaccessible by conventional real estate and private equity investors.
Our investment process can be described as cautious, disciplined, and highly selective. Above all, we focus on preserving our investors’ capital.
Learn more about ADF Special Opportunities LP >
Risk Disclosures > |
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