Special Situations are events, either financial or operational, that cause businesses to stop operating as usual and which have a material impact on their value. When one of these events materialises, the company goes through a crisis or at least a short-term transition period, which needs to be skilfully managed. The company may need to refinance its debt, or find a short-term liquidity facility, or a more fundamental restructuring of its capital structure, which may imply finding an equity partner or equitizing part of the existing debt. The company may also need operational restructuring in order to successfully tackle new products or market challenges.
Exito Partners has access to a wide network of investors and industry specialists who have the expertise and stamina to bring companies successfully through both financial and operational turnarounds.
Exito Partner’s network of investors extends beyond the London and European markets and the firm is trusted by investors in the US & Canada (through a chaperoning agreement), as well as by those in parts of Asia and the Middle East. Our investors include private equity & credit funds, emerging market funds, pension funds, insurance companies, HNWI, and family offices who are constantly looking for new investment or co-investment opportunities across all asset classes and jurisdictions. These are not just limited to the distressed and special situations sector but extend also to performing companies and assets. Furthermore, due to our extensive relationships with banks and other financial institutions, Exito Partners can also raise debt capital.
Exito Partners is interested to hear from parties that are looking to raise debt or equity capital for a particular investment project and are seeking a co-investor in order to manage their own risk. The firm will quickly assess the merit of an investment opportunity and organise accordingly one-to-one meetings with selected investors.
NPL Portfolio Solutions
The general consensus is that markets are facing another decade of NPL portfolio deals thanks to the ECB policy, and that of other central banks, of forcing commercial banks to clean up their balance sheet from bad loans. Furthermore, investors’ consensus is that likely interest rate rises, geopolitical conflicts and Brexit are important macroeconomic factors that will continue driving the restructuring of European banks balance sheets in 2018. Exito Partners believes that geographic areas of particular interest and focus will continue to be Southern Europe but also Ukraine, Russia, India, Turkey and China.
The firm provides valuations, structuring and sale services to financial institutions that have to navigate the uncharted waters of a NPL portfolio sale transaction, whereby due to the very illiquid nature of the asset classes, extraction of a fair value price for the assets is a very challenging and time-consuming endeavour.
Exito Partners is capable of supporting clients throughout the sale process and find the best strategy or solution to maximise value and execution probability of a NPL portfolio sale.
Often a solution to a problem requires thinking outside the box and coming up with something bespoke and creative. A structured solution is looking at the financial problem differently, yet in a way that still manages to achieve maximisation of the eventual outcome. A structured solution may be more complex than perhaps the plain vanilla equity investment, debt issuance, or outright sale of an NPL portfolio, and often implies bringing two parties together in sharing the outcome and success of a financial transaction.
Exito Partners prides itself on delivering best value for clients and ultimately exploring all available options. The firm has worked with many financial institutions and devised various structured solutions in various asset classes.