Turnaround private equity
CRS Turnaround now offering turnaround private equity on a case-by-case basis
CRS Turnaround now provides a bridge between troubled companies, and high net worth individuals & organisations that look for opportunities to invest in distressed companies.
These opportunities are pursued on a case-by-case basis.
For more information, see case-by-case turnaround private equity investment. (Link not active yet)
CRS Turnaround working towards a R300m turnaround private equity fund
We have already completed the legal and commercial underpinnings of the fund. A number of selected institutions will be approached with a placement memorandum to invite them to be investor participants.
For more information, see turnaround private equity fund. (Link not active yet)
The need for turnaround private equity
A turnaround invariably requires a cheque book (see funding) the business.
Presently there are no specialist turnaround private equity firms in SA.
While foreign and local DFI's (Developmental Funding Institutions) have been supportive of such a concept, especially in view of the job preservation aspect of it which is in alignment with their charters, they require a private sector lead investor.
Hitherto, in contrast to overseas turnaround management practice, the SA private sector has been reluctant to support a turnaround private equity fund.
Those private equity firms that do finance turnarounds tend to focus on underperforming rather than distressed companies.
Even though private equity firms indicate their willingness to look at turnaround situations, the lead-time for their due diligences tends to be too long for a company requiring urgent refinancing.
A narrow window of opportunity exists between viability assessment of a troubled business, and the point in time where the company will falter due to lack of funding.
A solution is required to overcome the barrier of finding turnaround funding during that narrow window of opportunity.
We believe the solution is for an integrated turnaround management/private equity approach where the same party that determines turnaround viability, provides the funding and manages the turnaround.
CRS Turnaround is uniquely positioned to offer such an integrated approach.
Further turnaround private equity information
Go to how turnaround private equity is different (Link not active yet) for an understanding of distinguishing characteristics vis-à-vis other private equity classes such as venture, expansion or buy-out capital.
If you are an investor interested in funding turnarounds, go to turnaround private equity as an investment opportunity (link not active yet).
If you are a distressed company looking for turnaround private equity funding, go to what turnaround private equity means to a distressed company (link not active yet).
Go to investment criteria (link not active yet) to find out how we decide to invest in underperforming and distressed companies.