Opportunities exist beyond traditional investments.
PAF Investments, LLC is a privately-held investor founded in 2005, dedicated to alternative investing.
We seek to generate absolute returns with volatility by exploiting inefficiencies and lack of liquidity in the lower middle-market, and by capitalizing on situations that are not mainstream investment opportunities.
Our expertise is in the expeditious acquisition of these investments, our analysis of the investment for return, and on execution of the transaction.
We do not invest in securities or undertake securities trading or bond/securities arbitrage. Rather, we either (i) acquire loans and liens of senior, secured lenders to distressed lower middle-market companies/credits, or (ii) take direct, controlling investments in lower middle-market companies, and operate, “tuck-in,” integrate, and disintegrate the assets and revenues of these investments.
Most investors are familiar with traditional investments, like a purchase of a stock, bond, mutual fund, or annuity. Traditional managers are measured against a benchmark return such as the S&P 500 Index. In alternative investing, we seek to generate an absolute return by active investing in event-driven situations or by investing in inefficient markets.
Our focus is on distressed activities and financially weak or troubled businesses that lack liquidity or appropriate financing. We focus on speed and flexibility. We have extensive experience with distressed assets, financially troubled businesses, and companies lacking liquidity.
Our investment review is often quite complicated; combining value oriented analysis and fixed asset valuations with legal aspects. From a basic perspective, the analysis initially is to determine the enterprise value of a company, then its asset value, and then the recoveries of the various constituencies and timing.
Our funds are committed and available. We do not need to raise money or seek co-investors. We can close very quickly, and in all cash transactions. We emphasize asset values, and often over-emphasize fixed assets in our value analysis. Our perspective of value may differ from management/ownership of the middle-market company.