Innovatus Capital Partners’ investment objective is to identify and capitalize off of market distress, disruption, and growth. In the increasingly volatile modern market, these shifting market factors can uncover new, compelling, and value-add investment opportunities:
Trends in the diagram above suggest investment opportunities will materialize as capital-constrained financial institutions, corporations and other holders of assets restructure their balance sheets, divest platforms, and seek alternative means of capital investment, research and development, and customer product and service offerings.
Moreover, capital sources appear to be contracting: the issuance of asset backed securities remains curtailed, the IPO and high yield markets have both diminished, certain non-bank finance companies lack access to the debt and equity markets, and hedge fund investors are shifting from long-term and illiquid commitments.
In a volatile economy, traditional sources of capital may be limited in their capacity to participate due to the influence of regulators, shareholders, their constituencies, and their own potential challenges.