TRG, an advisory boutique that specialises in turnarounds and crisis management, has launched an asset management arm designed to help private equity firms realise value from under-performing buyout funds.
The launch of the division suggests that TRG believes the record levels of capital flowing into the industry may leave some managers unable to deploy their funds successfully.
The new group will look to apply the firm’s expertise in restructuring and distressed situations to boost the value of portfolio companies, allowing fund managers to exit their investments more quickly and at than they could achieve by selling through the secondary market.
The service would offer firms the chance to achieve a higher rate of return than they would get from selling – usually at a discount – to a secondaries manager.
TRG’s managing principal Stephen Gray said: “TRG has a proven track record of successfully monetizing distressed, underperforming and end-of-life funds portfolios and asset pools.”
The asset management arm has already won its first client. TRG has been appointed to manage the Central and Eastern European private equity fund of Raiffeisen, Austria’s largest co-operative bank. It will be responsible for winding the fund down and selling off its existing assets, which are in the food, beverage, entertainment and technology sectors.
TRG was founded in 1981 and has more than 60 clients in the US and Europe.