Valhalla Financial Inc. (“Valhalla”) is a private investment firm focused on actively acquiring and managing opportunistic, distressed and turnaround investing using sector rotation to find deep value in private assets. The firm acquires positions in debt and equity to gain control over an asset or business or to be in a position to positively influence a restructuring or other value enhancement. Our principals each have in excess of 25 years of deep experience in workouts and restructurings of commercial and residential real estate, commercial and industrial loans and middle-market companies. We are never passive investors and are practiced in doing the “heavy lifting”.
Investments can be in any position in the capital stack but with a strong orientation towards being the control investor. Assets may include non-performing or sub-performing loans, underperforming real estate, operating companies and machinery/equipment.
Our philosophy is driven by a few simple tenets:
(i) distressed debt and special situations offer attractive opportunities;
(ii) entering through the top end of the capital structure provides some level of downside protection;
(iii) value can be created through active involvement in the company’s restructurings and operational improvements;
(iv) the distressed debt and distressed-for-control markets are inefficient.
Principal strategies of Valhalla include:
- Focusing on buying private assets in negotiated “off-market” transactions. Often attractive valuations and pricing inefficiencies occur due to “non-economic” selling.
- Not overpaying, regardless of what other market participants do.
- Being patient and having long-term staying power.
- Provide patient capital through difficult markets.
- Diversifying over many deals using numerous investment strategies.
- Understanding how to reposition and rehabilitate assets
- For every deal, we are either the expert or partner with the expert in the specialized business, local market, etc.
We are constantly exploring numerous opportunities and working hard to find good deals. We have experienced people and relationships within this industry. We understand where the opportunities are and situate ourselves to act expeditiously.
We are obsessive about due diligence.
Our Staff is made up of only experienced individuals who have been through these downturns before. We know this is not a short term market fluctuation, but a long-term structural market correction.
Our strengths lie in sourcing, analyzing and remediation. Using our underwriting skills, we are able to identify value opportunities that other investors may avoid because they lack the skill, the resources, or the time to underwrite the situation and find the value. We utilize our adept underwriting skills and discipline to lead us. We pride ourselves on our ability to understand and realize profits from the most complex transactions.
We focus on not losing money. Superior investment performance with less-than-commensurate risk is our primary goal. Above average gains in good times are not proof of a manager's skill. Rather, it takes superior performance in bad times to prove that those good-time gains were earned through skill, not simply the acceptance of above average risk. Thus, rather than merely searching for prospective profits, we place the highest priority on preventing losses. It is our overriding belief that, especially in the opportunistic markets in which we work, "if we avoid the losers, the winners will take care of themselves.