Distressed assets
Strategic investment focused on operational transformation
Value creation in complex situations
While our primary focus remains on strategic M&A services, Camaya Partners selectively engages in distressed asset investing when we identify exceptional opportunities where our operational expertise can generate substantial value beyond traditional capital investment. This activity naturally extends from our deep market knowledge and transaction experience, enabling us to participate directly in value creation while maintaining our core service mission.
Our approach to distressed asset investing is highly selective and focused. We consider investments only when there are no conflicts of interest with our clients and when we can leverage our cross-border transaction experience to unlock extraordinary value through strategic operational transformation. This expertise provides unique insights into distressed situations that purely financial buyers often overlook. As we deploy our own capital in these opportunities, we align our interests with long-term value creation and enable greater decision-making flexibility.
Beyond capital: Strategic operational transformation
Our distressed asset investment philosophy focuses on identifying fundamentally sound businesses facing temporary financial or operational difficulties. By systematically analyzing industry dynamics, competitive positioning, and operational inefficiencies, we target companies where our strategic guidance and operational skills can drive sustainable turnarounds.
This hands-on approach to value creation goes far beyond financial restructuring. We emphasize operational improvements, strategic repositioning, and management enhancement to turn distressed situations into successful businesses. Our investment criteria prioritize companies with strong fundamentals, defensible market positions, and clear pathways to operational improvement, situations where strategic guidance can unlock significant embedded value.
What distinguishes our approach
Deep industry knowledge and international expertise
Our extensive experience across various sectors offers unmatched insights into industry dynamics, competitive landscapes, and operational best practices. This knowledge allows us to spot value-creation opportunities that other investors might miss quickly and to apply proven strategies for operational turnaround.
Strategic rather than purely financial focus
Unlike conventional distressed debt funds, our investment approach prioritizes strategic transformation over financial engineering. We seek situations where our operational expertise, industry connections, and strategic guidance can drive fundamental business improvements, rather than relying solely on capital structure optimization.
Selective investment philosophy
We adhere to strict investment criteria, focusing only on opportunities that align with our risk-return parameters and where our specific expertise can provide significant competitive advantages. This selectivity ensures our limited investment capital is used only in cases with high potential for value creation.
Proven success in complex turnarounds
With over twenty years of managing complex projects, we have deep experience in navigating operational, strategic, and cultural challenges often found in distressed situations. This expertise is crucial in executing successful turnarounds in challenging environments.
Why strategic timing matters
01.
Our investments in distressed assets target companies with the following characteristics:
- Annual revenues between $10-100 million in sectors where we possess deep expertise
- Strong fundamental business aspects with defensible market positions facing temporary financial difficulties
- Clear opportunities for operational improvement where our skills can drive lasting value
- Management teams willing to work together on strategic transformation efforts
- No conflicts of interest with current or prospective clients
02.
Investment framework and expected returns
- Control or significant influence over stakes to ensure operational improvements are executed
- Active management involvement with consistent strategic guidance and operational oversight
- A 3-5 year investment horizon, providing sufficient time for comprehensive transformation, though we retain complete flexibility to extend this period or remain indefinitely involved, depending on business performance and alignment with our strategic interests
- Multiple exit options, including strategic sales, management buyouts, or refinancing
03.
Expected investment outcomes
Based on our experience and market analysis, our distressed asset investments aim for:
- IRR of 25-30%, depending on transformation complexity and market conditions
- 2-4x cash-on-cash returns over the investment period
- Operational improvements of 30-50% in key performance indicators
- Successful exit within 3-5 years through strategic sale or recapitalization
04.
Investment decision criteria and risk management
Our investment choices follow a thorough evaluation process that includes:
- Industry and competitor analysis leveraging our sector expertise
- Operational review to identify specific areas for improvement
- Management assessment and capability review
- Financial modeling across various scenarios and stress tests
- Legal and regulatory review, including cross-border compliance requirements
Investment philosophy and strategic approach
Our approach to distressed asset investing is rooted in the belief that creating extraordinary value requires more than just capital — it demands strategic vision, operational know-how, and proactive management. By applying our proven strategic skills directly to investment opportunities, we generate value for all stakeholders while achieving superior returns.
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