distressed asset investment

Distressed asset investment involves purchasing assets, such as real estate, companies, or financial securities, that are underperforming or facing financial difficulties. Investors see potential value in these assets, often at a lower price, believing they can turn them around through management improvements, renovation, or restructuring. The goal is to sell the assets later for a profit once their value has increased. While it carries risks due to the inherent challenges of distressed assets, it can also offer significant rewards for informed and strategic investors.