Typical Transaction Profiles

A special situation investment transaction can take many forms based on the specific investment characteristics and their severity. The following categorisation covers most special situation opportunities:

• Restructuring and turnarounds: underperforming or under-managed companies, often with over leveraged capital structures.
• Distressed situations: companies in default and/or workout mode with their lenders, or subject to insolvency administrations, i.e. receivership or voluntary administration.
• Transition or transformation situations: businesses experiencing problems progressing through particular stages of their growth process, leading to underperformance and competitive weakness.
• Corporate orphans: divisions of larger private companies or listed companies that may not have realised their full potential due to lack of resources, focus, or capitalisation.
• Shareholder disputes: businesses where the relationship between existing owners deteriorates and begins to have an adverse effect on performance.
• Industry consolidations and platforms: a new company is formed or a growing company is led by an accomplished management team intending to "build-up" the platform company through strategic acquisitions, usually in fragmented industries.
• Recapitalisations: a growth company seeks to alter its current capital structure to more efficiently pursue expansion and/or provide liquidity for current owners.

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