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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
With the help of the country's elected government these 'vulture investors' come to be in total control of this parasitic endeavour. was inspired to leverage their technology and network to help these flood victims after seeing vulture investors target homeowners during this difficult time.
The situation is similar to vulture investors who bought Argentina's discounted debt and tried to force repayment.
In the world of investing, vulture investors are those who buy distressed assets, almost invariably debt obligations, and then attempt to profit by either selling those assets at a higher price or by entering litigation against the debtor to extract a profitable return on the purchased assets.
But so-called vulture investors saw an opportunity to make even larger profits.
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.
"Vulture investors," as they are sometimes cuttingly referred to, realize there is still enormous value in distressed properties if their pension obligations can transferred to the PBGC.
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.
This lack of transparency created an unlevel playing field for potential sellers, who often found themselves at the mercy of vulture investors.
The "vulture investors" who make money on a falling market do it by a system known as short-selling.