Vulture investor: Difference between revisions
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Unlike an [[angel investor]], a '''vulture investor''' buys up [[assets]] and [[financial instruments]] below cost from [[distress]]ed entities. This could take the form of [[securities]], [[debt]], held assets, [[real estate]], etc. A vulture investor may purchase the controlling shares of a company in order to liquidate, thereby realizing a higher yield return on investment than the original purchase price. [[Real estate]] could be purchased from a [[borrower]] who is no longer able to make payments on their loan and needs to sell the [[property]] in order to improve their [[balance sheet]] or retain their [[credit rating]]. The main difference is that vulture investors rescue others from their own mistakes, whereas angel investors provide [[seed money]] in the hope that the investment will work. |
Unlike an [[angel investor]], a '''vulture investor''' buys up [[assets]] and [[financial instruments]] below cost from [[distressed inventory|distress]]ed entities. This could take the form of [[securities]], [[debt]], held assets, [[real estate]], etc. A vulture investor may purchase the controlling shares of a company in order to liquidate, thereby realizing a higher yield return on investment than the original purchase price. [[Real estate]] could be purchased from a [[borrower]] who is no longer able to make payments on their loan and needs to sell the [[property]] in order to improve their [[balance sheet]] or retain their [[credit rating]]. The main difference is that vulture investors rescue others from their own mistakes, whereas angel investors provide [[seed money]] in the hope that the investment will work. |
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==Criticism== |
==Criticism== |
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Revision as of 16:26, 23 March 2015
Unlike an angel investor, a vulture investor buys up assets and financial instruments below cost from distressed entities. This could take the form of securities, debt, held assets, real estate, etc. A vulture investor may purchase the controlling shares of a company in order to liquidate, thereby realizing a higher yield return on investment than the original purchase price. Real estate could be purchased from a borrower who is no longer able to make payments on their loan and needs to sell the property in order to improve their balance sheet or retain their credit rating. The main difference is that vulture investors rescue others from their own mistakes, whereas angel investors provide seed money in the hope that the investment will work.
Criticism
Some[who?] derisively refer to Vulture Investors as picking over dead bones rather than assisting troubled ventures.
See also
References
![[icon]](/wiki/File:Wiki_letter_w_cropped.svg){kind=small} | This section is empty. You can help by adding to it. (July 2010) |
External links
The Vulture Fund, The world's largest Vulture Capital Fund www.vulture-capital.net