Delta enables private equity and other private investment firms to unlock value (i.e., IRR) embedded in their firms and the investment funds they manage through a variety of customized financial solutions.
Delta offers four primary solutions to these firms and/or to their portfolio companies: (a) outright purchase of their individual claims for Delta’s own book; (b) lend money secured only by the proceeds from successful pursuit of their claims (i.e., litigation-collateralized loans); (c) provide funding to enable pursuit of one or more claims they hold through law firms and other professional services firms they have engaged; and (d) provide funding and active oversight and/or management to enable pursuit of one or more claims they hold (i.e., active management by Delta) either through firms they have already engaged or firms engaged and managed by Delta.
These transactions can be structured in a variety of ways to maximize tax efficiencies and/or other financial, investment, or operational considerations.
Oftentimes, these firms seek Delta’s assistance in the foregoing ways because they are winding down one investment fund and starting a subsequent fund, and they and their investors desire to have closure with respect to residual claims held by the funds and/or their portfolio companies. Similarly, these firms usually desire to work with Delta to determine efficient ways to fund and pursue claims that they and/or their portfolio companies hold but have decided not to pursue because of the costs involved and/or the burden that would be placed upon them in managing such cases. Working with Delta alleviates such concerns and allows such firms to pursue their claims at no cost to them other than agreeing to share the proceeds from a successful outcome with Delta. Accordingly, Delta enables these firms to unlock value and potentially increase IRR by pursuing claims they otherwise would not in a very cost-effective manner.