STRESSED ASSETS – AN ALTERNATE INVESTMENT CLASS – Our platform is dedicated to facilitating the buying and selling of distressed properties, providing a bridge between sellers in need and buyers seeking investment opportunities.

Stressed Assets – An Alternate Investment Class

Stressed Assets are also an ASSET –WHICH ARE AVAILABLE BELOW IT’S INTRINSIC FAIR VALUE DUE TO SOME INTRINSIC DISABILITY OR ENCUMBERANCE

This unique characteristic of Stressed Assets make them a DISTINCT INVESTMENT CLASS. While Return on Investments(ROI) in case of other asset classes (like Gold, Debt, Equities, Commodities, Currency) are dependent on the appreciation ie GROWTH which is dependent on many external economic factors beyond control, however in case of Stressed Asset the ROI gets generated the moment the Intrinsic disability or the encumbrance is removed. As this Intrinsic disability or the encumbrance is removed the valuation of the asset reverts to “normal” and this “normal” is much above the invested price. Therefore ROI in a Stressed Asset investment is generated just by changing the status, the ownership, by just executing simple logical actions.

The foremost objective for an investor to invest in stressed assets should be to generate an ROI > 20% PA, there is no other asset class which can visibly give such high ROI on a sustained basis.

Stressed Assets as an Investment class is capable of giving ROI>20%PA on a sustainable basis because of the perennial nature of the pipelines deals and opportunities to invest into and a clear visible exit route, thus “Stressed Asset Investment” is the bold , new and an evergreen investment class.

COMPARISON WITH OTHER TIME TESTED INVESTMENT CLASSES

At any given point of time in the Indian economy some sectors (atleast two) are always in distress, with time they may come out of distress but then some new sectors will get distressed.

GOLD, DEBT, REALTY, COMMODITIES, CURRENCY	STRESSED ASSETS
The ROI is dependent on their appreciation over the period of time. Appreciation too is dependent on many external factors Exit is Long to Medium term Average returns are in the range of 10%-24% (max) PA The ownership of these investment class is always wide spread thereby always creating situations of BUBBLE and leading to crashes thereby are cyclical in nature	ROI is inherent in the purchase action itself, as the purchase is done at a significant discount to the normal prevailing value Appreciation happens the moment the acquisition process is complete Exit is Immediate to Short term Minimum returns are 30% + Evergreen business model, No BOOM & BURST CYCLE One Sector of the economy is always in stress, therefore perpetual pipeline of opportunities

Co-Investing – The best Investment Vehicle

The biggest challenge/hurdles for a standalone stressed asset investor to invest in Stressed assets are:-

Huge investment needed to acquire a potentially profitable stressed asset
Understanding the complexities of a stressed asset
Lack of thorough diligence of the asset
The risk involved in investing into a stressed asset in early stages is very high
There is no clear timebound exit route or exit strategy
Lack of understanding of the technical issues important for scripting a turnaround
Lack of understanding of the geography and local peculiarities where the asset is located
Lack of continuous flow of potentially profitable deals and investment opportunities
The skill set and expertise to acquire, resolve and exit a stressed asset needs a constant enhancement and degradation

For a Stressed asset fund to succeed the managing team must be having a mind of an entrepreneur, it must have the instincts to spot a turnaround opportunity, must have the skills to develop a resolution/turnaround plan, must have an expertise to identify risks and develop risk mitigation plans, must have ability to execute its plans with punctuality and precision, must have patience and last but not the least the team must be grounded with a sense of responsibility towards money which is riding on its shoulders.

Keeping all the above concerns in mind, one can very well deduce that all these are very well addressed and taken care of by Investing in a pool or in partnership with an AIF (Alternate Investment Fund) or an ARC (Asset Reconstruction Company) or to put it in a better word CO-INVESTING.

Proposed Return & Exit Strategy

Stressed Assets has a low gestation period to generate ROI. The exit period can be as short as 3 months, however an optimum period to exit a reasonably sizeable asset should be about 30 months.

EXIT FROM THE ASSET SO BOUGHT	RETURN EXPECTED
SOLD AS IT IS IMMEDIATELY/	50% UPSIDE
STRIPPED AND SOLD IN PARCELS	75% UPSIDE
REVIVED AND TURNED INTO CASH GENERATING BUSINESS	100% UPSIDE
ROPE IN A PROFESSIONAL TURNAROUND ENTITY	MULTIBAGGER