‘Complex to understand and difficult to put in place’

Special situations strategies can offer high returns but also involve a lot of spadework. Jaime Prieto of Kartesia explains how such deals can be made to work

What does special situations mean to you?

There are myriad definitions. In general it refers to investors in equity or debt, or a combination of the two, looking for returns in the mid- to high-teens. For us, it involves buying debt from existing lenders, either totally or partially, and simultaneously reaching agreement on the provision of additional liquidity facilities for the company and the renegotiation of the terms of the debt.

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