Investments into
distressed assets

Avistar is a leading investor into non–performing corporate debt and distressed assets at the Ukrainian market. From 2014 we actively invest our funds into this asset class


The total amount of invested capital was more than $10m in 2016. A major share of invested capital went into distressed debt in real estate, machine-building and agricultural sectors

Our target clients in corporate sector include:

  • Large and mid-corporates, which have issues with debt service and which are in distressed or stressed situation
  • Companies in bankruptcy and liquidations, which are willing to find a buyer for the remaining fixed assets.
We invest into both into distressed corporate debt and distressed fixed assets. Our major counterparties, from whom we acquire distressed corporate loans, are commercial banks, international financial organizations, and leasing companies.
Investments in distressed assets - AVISTAR

Market size $ 47 bn

$ 22 bn

Non-performing debt of corporate sector to foreign creditors
We estimate that market of non-performing debt of Ukrainian borrowers to the foreign creditors has a size from $18 bn to $25 bn.

The major legacy positions are still not restructured and / or are in a state of slow restructuring.

$ 15 млрд

NPL on the balance sheets of ukrainian banks
As of 01.01.2017 corporate sector owes to Ukrainian banks around UAH 811 bn ($30,2 bn), 48% of which is non-performing according to the estimations of IMF.

In corporate sector banks very slowly clear balances from bad debts due to the low number of real investors in this type of assets.

$ 10 млрд

NPL under the management of DFG
84 Ukrainian banks were declared insolvent since 2013.

DGF manages 418 bn UAH assets of 70 insolvent banks, UAH 334 bn ($12,3 bn) of which are loans.

According to the official information from DGF, 95% of loans are non-performing.

* without including loans secured by junk securities and without including portfolio increase due to the exchange differences.
Investments in distressed assets - AVISTAR

INVESTMENT OVERVIEW 2016


Size of distressed debt, purchased in 2016 by own funds

$ 130 m

$ 51 %

Debt of corporate sector

$ 49 %

Debt of retail sector

Investments in distressed assets - AVISTAR

Our focus on investing


Investment sectors

Agricultural sectorAgricultural sector
Food processingFood processing
Residential real estateResidential real estate
Commercial real estateCommercial real estate
Mining industriesMining industries
IT/TelecomIT/Telecom


Our partnership with international financial institutions (IFC, DEG, and other) in distressed assets area is a separate growing field for the company. Our experience enables us not only to structure complex investment deals, but also to launch real-life operational restructuring together with our partners aiming to successfully sell the underlying assets
Our investment process foresees all stages of NPL management, starting from asset purchase (loan), analysis, structuring, workout and exit


Investments in distressed assets - AVISTAR

INVESTMENTS


1-6 months investment horizon

Our specialized network with access to investment ideas
Pre-selected options among thousands of potential cases
360º collection analysis
Specialized legal DD and analysis
Collateral / assets valuation
Financial analysis and IRR calculations
Tough price negotiations to reach market price discounts
Well-prepared short-term investment exit
Execution & Exit
Cash return

or

Clean asset or property, which could be sold any time at market price