Turnaround investors splash £1bn, says KPMG
A group of turnaround investors has invested nearly £1bn in distressed companies in the UK in the last 12 months, according to research by KPMG.
The accountancy firm said there were about 60 specialist turnaround investors in the UK which have completed 73 deals in the past year.
Will Wright, restructuring director at KPMG in Birmingham, said the research had revealed "a new breed" of investor to enter the distressed acquisition market since the beginning of the downturn.
He said: "Historically, distressed investors acquired companies out of administration to salvage what remained. While the traditional model still exists, we have seen small investors in the UK looking to step into businesses while they are still solvent. This change in approach is driven by a need to step into a distressed situation before it unravels into insolvency and precious value is destroyed."
Eighty per cent of turnaround investors are seeing more opportunities than a year ago, said the KPMG research.
