Other types of funds

Solution Fund

These are reserved closed-end funds that can be established through the contribution of real estate, real estate rights or mortgage loans instrumental to the purchase of properties, conferred to the fund in the context of insolvency procedures and crisis situations.

Crisis situations of real estate companies, deriving from financial stress and / or industrial problems, normally lead to insolvency proceedings in which it is very difficult to value real estate assets for various reasons, including:

• the impossibility of the procedure to invest new financial resources (even if these resources are already available to the company in crisis);
• the impossibility for the company in crisis to access new external finance for the completion of the works;
• the presence of executive / conservative deeds and registration of guarantees the creditors of the company that prevent the sale or splitting of the properties for sale.

In all these situations – and in particular where there is a need to make investments, even minimal, necessary to make the properties salable (e.g. in projects at an advanced stage of development) – it could be useful, for the best satisfaction of the corporate creditors, transfer the properties to a closed-end real estate fund, already existing or established for the purpose, which may be in a position to make the investments necessary for the development and manage the properties for the purpose of a better valorisation of the same and therefore greater “recovery” for creditors.

This type of fund can:

• issue shares in correspondence with the contribution of the properties;
• raise new finance by issuing new shares, in order to support the investment plan and enhancement of the fund;
• allow the use of a modest debt depending on the capacity of the real estate values ​​released from mortgage guarantees that would be canceled as part of the transaction;
• proceed with an independent and professional management of the real estate portfolio in order to enhance and optimize the liquidation of the same for the benefit of all investors participating in the fund.

This product is an alternative option dedicated to financial operators who prefer to find a strategy for the valorization of NPLs, rather than simply selling them to third parties or completely internal management.

This solution makes it possible to keep the operators involved together with the investors in the operations to enhance the loan portfolios and real estate assets.

Special Sits PE Fund

These are reserved closed-end funds that are will be focused on the purchase of majority equity stakes in SMEs that, despite a good P&L, are in financial troubles or other special situations, such as, by way of non-exhaustive example:

• recovery plan pursuant to art. 67 L.F., debt restructuring agreement pursuant to art. 182-bis and ss. L.F.;
• arrangement with creditors pursuant to art. 160 and ss. L.F.;
• provisional exercise of bankruptcy, extraordinary administration or compulsory administrative liquidation, voluntary liquidation;
• other particularly complex situations that are an obstacle to normal business management (management deadlock, disputes between shareholders, etc.).