Targeted Investments

Blott Asset pursues an active private equity approach that captures value in underutilized companies and assets. The leadership teams we work with face difficult change. Our targeted investments possess unique active value attributes, including:

  • Underutilized assets
  • Embedded and under-valued Infrastructure assets
  • Struggling leadership, or leadership transitions
  • Ownership concentrations, activist shareholders
  • Under-valued off-balance sheet assets
  • Inflated on-balance sheet liabilities
  • Operating and financing strategy dislocations
  • Capital structure arbitrage potential
  • Capital constraints, illiquid or distressed securities

PRIVATE EQUITY

We develop investment opportunities in cash generative businesses and assets that have strong defensible competitive positions with significant value creation opportunities. Targeted investments include acquisitions of divisions or assets from corporations or agencies, acquisitions or recapitalizations of privately owned or publicly traded businesses, majority investments in Infrastructure assets and public partnerships, acquisitions of distressed businesses or their securities either through a restructuring or a bankruptcy process, and acquisition of partnership or residual equity interests in structured entities. We invest behind management teams that are effective operators in an environment of challenging growth prospects and low asset utilization.

PUBLIC EQUITY

In addition to being effective in private markets, our private equity value strategies create unique investment opportunities in publicly traded securities. Going-private buyouts are one aspect of our public equity strategy. We also focus on capital structure arbitrage, de-leveraging recapitalizations, securitizations, carve-outs, spin-offs, distressed security and active-value investing, and hedging. We employ fund-level leverage where appropriate to amplify returns where our efforts have generated positive alpha. We employ hedging and portfolio management strategies as risk management tools to isolate long portfolio sector and market effects. Taken together, our private equity driven alpha strategies and rigorous portfolio risk management combine to generate consistently superior risk adjusted returns from public market investments.

INFRASTRUCTURE AND SECURITIZATION

Infrastructure and structured portfolio investments, especially in government-regulated sectors (such as media, telecommunications, transportation, water and municipal services, energy, and healthcare) can generate reliable risk adjusted returns that exceed those prevailing in public markets. Individual structured investments generally require equity commitments for a minimum of 15 to 20 years. The assets we buy typically generate consistent annual cash flows over long time periods. These value opportunities require a unique and highly structured financing solution. By combining over 15 years of global Infrastructure, private equity, real estate, securitization and fixed income investment expertise, we unlock value opportunities in this asset class which are frequently missed by management teams and other less flexible capital providers.

DISTRESSED SECURITIES

We buy companies facing financial distress where we identify deep value. Sometimes strong companies with compelling growth prospects have been capitalized with inappropriate or poorly structured financial leverage. We invest behind strong management teams to align a company’s capital structure with its business plan and asset profile. We maximize shareholder value by capturing arbitrage opportunities presented by security miss-pricings, off-market debt structures, broken credit securitizations, or ineffective oversight, either by the originating agent bank or managing agent. Achieving growth in an environment of expanding global liquidity and competition requires strategic flexibility. In all cases, our investment objective is to maximize shareholder value by de-leveraging the balance sheet and unlocking growth prospects.