Vulture investor

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 derisively refer to Vulture Investors as picking over dead bones rather than assisting troubled ventures.

See also

• Vulture fund

External links

The Vulture Fund, The world's largest Vulture Capital Fund www.vulture-capital.net