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Asset Management

TRG Asset Management specializes in managing distressed and underperforming pools of equity investments and debt instruments. TRG AM has a proven track record of successfully monetizing distressed, underperforming and end-of-life funds portfolios and asset pools. We work to increase net asset values and speed portfolio exits, resulting in substantially higher and faster returns, along with lower expenses, for investors. TRG AM operates in Central and Eastern Europe, Western Europe and other markets.

As the most active hands-on asset manager focused on distressed and underperforming funds, TRG Asset Management brings together:

	A proprietary workout model for financial and operational restructuring of distressed and underperforming assets.
	A team of local workout specialists with both U.S. and regional experience, backed by TRG’s financial and industry specialists.
	A global network and local coverage of lenders, investors and operating companies in a wide spectrum of industries.
	Expertise in providing fiduciary services for investors, creditors and judicial bodies.
	Experience working with distressed and underperforming companies and private equity funds in Central and Eastern Europe since 1992 and in the US and Western Europe since the mid-80s.

TRG AM offers many advantages to investors:

	Expediency: We move and deploy resources rapidly in special situations to preserve and protect investment value.
	Value-added management: TRG’s trained and experienced professionals increase the portfolio value by actively restructuring underlying assets
	Increased efficiency: TRG AM’s comprehensive approach reduces cost and eliminates redundancies in management and professional fees.
	Focus on liquidity events: TRG AM is very focused on developing and implementing alternative exit strategies very quickly to maximize and repatriate capital to limited partners.
	Flexible fee structure: TRG AM’s fee structure can be flexibly structured and is always aligned with the economic interest of the limited partners.

Case Studies

Fund I: The limited partners of this troubled Central European private equity fund were offered a very low percentage of NAV for their LP interests – 30% on a base that had already been written down by 40% – by another private equity fund operating in the region. After considering their options, the LPs turned to TRG for an objective and accurate assessment of the portfolio. TRG concluded that the assets were worth far more than the LPs were being offered. Believing that TRG could provide LPs with the best outcome, the LPs then appointed TRG – over several investment banks and management consultancies – as the fund manager and general partner of the fund.

TRG AM reduced the fund’s operating expenses by over 50% in six months and eliminated the conflicts of interest behind those expenses. At the same time, TRG AM restructured the portfolio investments and developed and implemented business plans for each, highlighting the sources of value. The assets spanned four countries, a variety of businesses – such as a real estate project still on the drawing boards and a stalled hotel development – and illiquid minority equity investments in a number of operating companies.

As a result of TRG AM’s work, exits for every company in the portfolio were negotiated within two years. The limited partners recovered 75% of their principal and 150% of the portfolio’s NAV.

Fund II: The limited partners of this US-based venture capital fund were frustrated with the managers’ ability to meet the fund’s return horizon. Continued high expenses, conflicts of interest, and the lack of exit strategies moved the limited partners to appoint TRG AM as the investment advisor, charged with expediting portfolio exits and maximizing value for the assets.

TRG provided an initial objective and accurate valuation of fund’s remaining investments. A member of the TRG team joined the board of directors of each company and took an activist role. TRG tailored value creation strategies for each portfolio company and, within 12 months, negotiated exits at attractive prices for all of the fund’s investments and wound down the fund.

For further information, please contact Parham Pouladdej.