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Given the lack of market value in these investments, it is extremely difficult to manage these
divestitures on a part-time or “half-hearted” basis. Using normal sales channels is generally
ineffective. We take a proactive, focused approach to effectuate the disposition of these
impaired assets.
Value Added Benefits:
- Direct tax benefit through recognition of the loss on disposition returning as much as 40% of the total investment made by the Corporation
- Relief from the administrative burden and cost of maintaining these fully impaired investments
- Improvement in the risk profile of the overall portfolio
- Free the investment team to focus on the core investment strategy
U.S. CVG Case Study - Disposition of Fully Impaired Investments for a Multinational Conglomerate:
- Completed the disposition of 16 direct investments for the venture group of a multinational corporation with an aggregate original investment cost of $20.9 million
- Corporate venture group realized tax benefits approximating $4 million
- The disposition process resulted in total proceeds of $729,000, which amounted to $389,000 above carrying value. The investments were carried on the balance sheet at an aggregate fair value of $340,000
Please reach Michael Seidler or Philip Limeri to discuss how we may help you achieve your objectives.
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