The Turnaround Funds market - Germany

A Special Situation refers to particular circumstances of investment opportunity for funds or investors on a distressed poorly-performing firm, whose current valuation in the market differs from the underlying fundamentals of its securities (loss of a significant market share, balance sheet imbalances, etc.), in an attempt to profit from a potential rise in valuation that the special situation presents. This includes an equity based turning business event by the restructuring of a company or via corporate transactions (such as spin-offs, share repurchases, security issuance/repurchase, asset sales, or other catalyst-oriented situations)

Funds or investors involved in the aforementioned deals are called revolving funds , when bringing equity to sustain a company's poor financial conditions, turnaround funds when contributing with capital and sometimes human resources to develop and implement a problem-solving strategy for a distressed company, and vulture investors , when treating with a bankruptcy firms. This entities exist and place themselves in a specific segment of the market where there is absence or lack of financing sources, such as bank funding or credit