Approach

Investment Philosophy

Our objective is to generate attractive risk-adjusted returns by offering "high-touch" capital and operational solutions in transitional investment situations where we can influence the outcome. We focus on investments that allow us to utilize a flexible approach to acquire stakes in companies or assets where we have control or significant influence and have the ability to transact across the full range of the capital structure. A typical WL Ross transaction tends to be characterized by a combination of some or all of the following attributes:

  • Out-of-favor industries or industries undergoing regulatory change/dislocation
  • Businesses underperforming their peak operational or financial capabilities
  • Situations that require transitional capital
  • Complex special situations with attractive valuations
  • Transactions where we believe we can alter the risk/reward equation
  • Industries where we have a perceived competitive advantage

In summary, we target transactions where we believe we can alter the risk-reward for the benefit of our investors.


Investment Process

Opportunistic buyouts
-Controlling interest and attractive entry valuation
-Platform consolidation
-Add value through operational improvement, strategic mergers and acquisitions, optimization of capital structure and multiple expansion
Restructurings/turnarounds
-Debt for control, highly structured or direct equity investments
-Typically targets out-of-favor industries or distressed companies
-Value creation through industry recovery, strategic engagement and operational improvement
Special situations
-Structured investments
-Toehold positions with potential for control
-Low creation multiples and attractive entry items
Real assets
-Value creation through both current income and asset value appreciation
-Employ reasonable financial leverage
-Balance between stability from long-term contract and upside from market pricing actions

WL Ross & Co. LLC is an investment adviser and is an indirect, wholly owned subsidiary of Invesco Ltd.