vulture investor

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Vulture Investor

1. In venture capital, an investor who buys a company with an excessive amount of debt in the hopes that streamlining and reorganization will make the company profitable. Vultures engage in a high risk, high reward type of investment.

2. An investor who buys an invention from the inventor. The term in this sense is slightly derogatory, as the vulture investor usually profits from the invention while the investor does not.

vulture investor

An investor who attempts to profit by buying debt of bankrupt or credit-impaired companies. Vulture investors are generally interested in the debt of problem companies that hold substantial tangible assets.
References in periodicals archive ?
But so-called vulture investors saw an opportunity to make even larger profits.
On the other hand, firms having hedge funds among their investors show comparable results to those with other vulture investors, such as private equity funds.
Despite the efforts of a handful of highly litigious vulture investors, we have successfully implemented the concurso plan, thus beginning a new era for Vitro.
One source said MLB is holding up trading in the loans because of concerns that vulture investors will snap up the debt and force the team into bankruptcy -- just like they did last year to the Texas Rangers.
Istithmar had been planning to convert the site's 300,000-square-foot office building back into a high-end hotel, and now that Dubai is out of the picture, vulture investors are reportedly chomping at the bit to take the helm at a steep discount.
They see the vulture investors as recklessly wiping out the workers' pension plans, all the while knowing that the PBGC will bail them out and raise premiums on companies playing by the rules to make up the difference.
While hedge funds are often viewed as predatory, and perceived to have predatory intentions if they buy a big stake in a company, "actually hedge funds are less vulture investors than they are value investors," Easter ling said.
Braunschek estimated 12 to 14 months, and added that, despite the circling of vulture investors, "you won't see the deep discounts of the congregate care days.
Vulture investors may be funds such as Oaktree Capital Management and Whippoorwill Associates, which raise capital primarily from institutional investors for investment, or the distressed securities arm of investment firms such as Donaldson Lufkin & Jenrette and Warburg Dillon Read, which take positions for in-house investment purposes.
A more charitable view holds that by consolidating large blocks of debt, vulture investors facilitate restructurings by reducing the number of claimholders, thus reducing the creditors' coordination problem.
Rather, it is being generated by strategic investors, real estate vulture investors, REITs, pension funds, wealthy individuals and foreign investors, all of whom expect high returns on their capital.