Investment Criteria

HC-HMV

There is no such thing as a typical Re:Capital investment. However, our deals generally have the following attributes:

  • Stressed or distressed situations
  • Stakeholders – one or more looking for change
    • Lenders, shareholders, creditors, directors
  • Underperforming or non-core business or division of a larger group
  • Identifiable problems which can be resolved through the application of our financial and/or operational restructuring expertise
  • Robust tangible assets
    • Accounts receivable
    • Stock capable of securitising our funds based on our valuation principles
    • Plant and machinery, property, etc

Sectors

Retail, consumer goods, manufacturing, engineering, distribution.

Ownership Requirements

Control positions are preferred at the outset but with no limitation to relinquishing control as success targets are met over time.

Investment Horizon

Hilco has a medium term investment approach and holding periods will likely range from three to five years depending on the corporate strategy and the goals.

Size Criteria

Re:Capital typically invests in situations requiring $1 million to $250 million in debt/equity capital although larger commitments can be arranged.

Profitability

Current profitability is not required but businesses should be able to demonstrate a historic ability to generate consistent operating profits.

Does your company meet our investment criteria? Contact us.