mark.walker620:
I wish I owned a farm in the Ukraine as it sounds like a fun venture.

I am assuming based on the tone of your responses that the answer to my question is a no.

It's not really a stupid question. There are definitely PE groups that own farmland, but they would not be run anything like a traditional LBO fund. And there are definitely PE funds focused on various emerging markets such as Eastern Europe. I do think I've seen funds that own farm land in developing countries - not necessarily in the Ukraine, specifically. There are plenty of funds that invest in physical assets such as land. It's just a very obscure/niche area and would not be classified as traditional PE in any sense.
 
Best Response
prospie:
mark.walker620:
I wish I owned a farm in the Ukraine as it sounds like a fun venture.

I am assuming based on the tone of your responses that the answer to my question is a no.

It's not really a stupid question. There are definitely PE groups that own farmland, but they would not be run anything like a traditional LBO fund. And there are definitely PE funds focused on various emerging markets such as Eastern Europe. I do think I've seen funds that own farm land in developing countries - not necessarily in the Ukraine, specifically. There are plenty of funds that invest in physical assets such as land. It's just a very obscure/niche area and would not be classified as traditional PE in any sense.

Wouldn't this be considered REPE?

 

Your title is very misleading...

People tend to think life is a race with other people. They don't realize that every moment they spend sprinting towards the finish line is a moment they lose permanently, and a moment closer to their death.
 

Distressed/special situations firms do invest in hard assets, sometimes directly but usually through debt equity swaps in the holding company or via foreclosures. Either way they would have acquired the debt in the first place and the hard assets serve as collateral on the debt.

In the example of Ukraine farms, presumably the investor bought debt of the farm owner who then proceed to default on the payments. Usually the creditor would sue the debtor in court in order to obtain judgments against the collateral assets. Not sure how feasible is straight up foreclosure in Ukraine but presumably both parties can work out some kind of agreement under which the ownership of the collateral is transfered to the creditor.

Too late for second-guessing Too late to go back to sleep.
 

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