WHO WE ARE
FINDECO Ltd. (Financial Development Company) is an investment firm established to pursue opportunities through the acquisition of equity interests in companies experiencing so-called Special Situations.

Special Situations refer to corporate transactions that, due to circumstances related to the company’s condition, ownership, or management, require tailored transfer strategies not compatible with traditional auction processes.

FINDECO focuses particularly on international companies. Investments are executed either directly or indirectly through specially established investment vehicles and/or sub-holding structures, depending on the most efficient approach for each specific case

ACTIVITY

BELOW ARE EXAMPLES OF CORPORATE SCENARIOS THAT MAY QUALIFY AS SPECIAL SITUATIONS, AND THEREFORE POTENTIAL TARGETS FOR INVESTMENT BY FINDECO, ACCORDING TO ITS MANAGEMENT:

Growth-Constrained Companies in Fragmented Sectors: Businesses operating in highly fragmented markets that lack the scale, managerial expertise, or financial capacity to achieve their growth objectives—objectives that could be realized through consolidation or mergers with similar or complementary firms.
Companies Facing Succession Challenges: Firms impacted by succession or generational transition issues among controlling shareholders, which have led to weakened management, reduced profitability, or a lack of long-term strategic direction.
Spin-Offs or Divestitures from Larger Groups: Businesses resulting from spin-offs, the discontinuation of business units, or divestitures by larger corporate groups of non-core or non-strategic assets—typically with strong potential but limited financial and managerial resources for development.
Underperforming Private Equity Subsidiaries: Portfolio companies of private equity funds experiencing underperformance or burdened by debt levels inconsistent with projected cash flow generation.
Turnaround Opportunities: Firms requiring operational restructuring or those with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins significantly below industry standards, representing substantial opportunities for performance improvement.
Financially Distressed but Operationally Viable Companies: Businesses with solid operating results but struggling under unsustainable debt loads, unable to finance growth or manage investment needs. In such instances, FINDECO’s investment may be conditional on prior financial restructuring or creditor agreements.
Companies in Insolvency Proceedings: Enterprises currently under formal insolvency frameworks (e.g., arrangements with creditors, extraordinary administration), where recovery and restructuring strategies may allow for value creation.

STRATEGY

FINDECO primarily targets investments in industrial and service sector companies, while applying particular caution in industries vulnerable to rapid technological obsolescence. Its preferred targets are small and medium enterprises (SMEs) with annual revenues ranging from £30 million to £300 million.

For each investment, FINDECO typically allocates an average of £20 to £30 million in risk capital. However, it retains the flexibility to make larger investments, especially when collaborating with co-investors or leveraging external financial resources.

The Company’s investment model focuses on acquiring controlling stakes in its target companies. Control may also be exercised jointly with other investors, facilitated through shareholder and co-investment agreements that define key governance mechanisms—such as strategic decision-making, executive appointments, and eventual exit strategies.

Members of the FINDECO Management Team may assume governance or operational roles within the portfolio companies, working closely with executive management to drive recovery, growth, and long-term value creation.

While control investments are preferred, minority stakes may also be considered when appropriate. In such cases, governance agreements will be secured to safeguard FINDECO’s interests and provide for a clearly defined exit route.

IN ADDITION TO EQUITY INVESTMENTS, FINDECO MAY DEPLOY ALTERNATIVE CAPITAL INSTRUMENTS, INCLUDING:

High-yield subordinated debt or mezzanine financing, potentially with equity conversion rights or collateral secured on company assets; 
Acquisition of non-performing loans (NPLs) from business creditors, banks, or financial institutions—often in tandem with equity stakes in the same company as part of an active value-recovery strategy.

The average investment horizon is three years, reflecting the estimated timeframe required to implement operational turnarounds and restore profitability in companies facing Special Situations.

SELECTION

The FINDECO Management Team has cultivated an extensive network of high-level relationships across various professional domains, including senior executives, entrepreneurs, and corporate directors, as well as advisors from commercial and investment banks, accounting firms, and law practices.

THIS EXPANSIVE NETWORK SERVES AS A VALUABLE SOURCE OF HIGH-POTENTIAL INVESTMENT OPPORTUNITIES AND INCLUDES::

Experienced Managers and Industrial Partners with a proven track record in sectors aligned with FINDECO’s investment strategy, providing valuable insight and operational expertise.

Target Companies that may themselves present opportunities or lead to further prospects involving competitors, clients, or suppliers.

Trusted Professionals—such as lawyers, tax advisors, and accountants—who, by virtue of their proximity to company operations, are often among the first to recognize signs of financial or operational distress.

Entrepreneurs, who frequently serve as key sources of market intelligence within their industry or in adjacent sectors.

Corporate Consultants and Advisors, who assist companies facing financial or industrial challenges in designing and executing restructuring or recovery plans; as well as law firms specializing in insolvency and bankruptcy proceedings.

Private Equity Funds with holdings in overleveraged companies, and banks that hold equity stakes in distressed companies unable to meet their financial obligations.

Investment Banks, Advisors, and Intermediaries appointed by shareholders or those with visibility into companies currently undergoing or approaching Special Situations.

In accordance with internal governance procedures, all investment opportunities are subject to formal approval by the Management Board, which evaluates each transaction following best practices commonly adopted by leading private equity funds.

SPECIFICALLY, THE EVALUATION PROCESS FOR POTENTIAL INVESTMENTS TYPICALLY INCLUDES:

Comprehensive Due Diligence, including legal, accounting, commercial, tax, and, where applicable, environmental assessments;

Business Plan Preparation, developed in collaboration with FINDECO’s independent financial and industrial advisors, and, where appropriate or beneficial, shared with the management of the target company;

Financial Analysis, aimed at ensuring a satisfactory expected return on the capital invested, typically over a three-year horizon.

This same rigorous process is also applied to the evaluation and approval of Special Situations involving debt instruments, including the issuance of subordinated and/or mezzanine debt, or the acquisition of non-performing loans from financial institutions.