At Aurum, we target businesses of larger corporations that would benefit from new ownership, including divestitures, spin-offs or carve-outs. Aurum invests its capital based on the ability to effect material improvement in profitability through implementation of a new business strategy, cost reduction and capital investment. We have successfully created new companies to purchase the assets of businesses in successful divestiture transactions.
Our investment strategy stems from the belief that superior investment returns are achieved by catalyzing the turnaround of underperforming or distressed businesses. We often pursue businesses facing the threat of closure, liquidation, or with a history of operating losses. At Aurum, we prefer to invest in turnaround plans predicated on cost reduction, capital investment and capital availability.
Aurum targets potential businesses that are operating in bankruptcy. It has extensive experience in structuring complex transactions involving banks, bondholders, other creditor constituencies and stockholders. At Aurum, we have successfully raised significant capital to provide exit financing to banks and other creditor groups in connection with its bankruptcy activities.
Aurum targets good businesses that cannot otherwise obtain capital because the industry in which it operates is out-of-favor with the capital markets. The capital markets sometimes are closed to companies operating in industries that are cyclical, contracting, or burdened with over-capacity. Aurum takes a contrarian and long-term view in such situations.