Investments into distressed debt are an important niche market in Luxembourg which soared over the last decade, contributing to the Grand Duchy’s success as a prime location for the structuring of Alternative Investments in and through Europe. The current COVID-19 crisis, the resulting economic turmoil and the need of businesses to create liquidity should provide new opportunities for investments into distressed debt.
Broadly speaking, investments into distressed debt rely on the acquisition of non-performing loans or other distressed debt instruments at a price below per value. Thereafter, the idea is to realize capital gains upon the disposal or repayment of the debt instrument once the financial situation of the debtor improves.
Investments into distressed debt may be organised via different Luxembourg vehicles including, in particular, Luxembourg companies, securitisation vehicles and fund vehicles or a combination thereof. This webinar provides an overview of the common investment solutions available in Luxembourg.
2. Distressed debt investment opportunities in the post-COVID-19 world
3. Luxembourg solutions for investments into distressed debt
- The specialised investment fund (SIF)
- The reserved alternative investment fund (RAIF)
- Securitisation vehicles
- A Luxembourg company
4. Concluding remarks
Information and registration here.