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.

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

Our focus on investing

Investment sectors

Agricultural sector

Food processing

Residential real estate

Commercial real estate

Mining industries

IT/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

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

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

Investments intodistressed assets