Investment Strategies

Värde invests in five core segments and diverse strategies within each segment.

CORPORATE AND TRADED CREDIT

This segment comprises restructurings, liquidations and opportunistic traded credit in both corporate and government issued instruments.

Strategies may include:

  • Opportunistic credit
  • Restructurings
  • Capital structure arbitrage
  • Liquidations
  • Portfolio hedges

FINANCIAL SERVICES

This segment focuses on private equity investments in financial services businesses.

Sectors may include:

  • Specialty finance
  • Insurance
  • Trust and corporate services
  • Asset management

REAL ESTATE

This segment focuses on opportunistic and value-add investments in real estate assets (both residential and commercial), operating companies, and real estate secured debt.

Strategies may include:

  • Private equity and platform investments
  • Residential land acquisition and development
  • Homebuilding
  • Asset repositioning of hotels, offices, and retail
  • Acquisition or management of NPL or distressed asset portfolios

REAL ASSETS & INFRASTRUCTURE

This segment comprises private credit and asset-level equity investments in energy, transportation and related industries.

Strategies may include:

  • Upstream and midstream energy
  • Shipping
  • Aviation
  • Infrastructure

MORTGAGES

Värde is a leading investor in commercial and residential mortgages including new originations, secondary loans and portfolios, securities and servicing.

Strategies may include:

  • New origination of commercial mortgages
  • CRE CLOs and CMBS
  • Private equity, servicing, and platform investments
  • Residential mortgages and securities

Investment Principles

Värde applies a set of core principles to opportunities across the firm’s investing platform. The process, discipline and rigor draw on the firm’s long history in the investing business.

The key tenets of Värde’s investment philosophy are:

  • Market Inefficiency
  • Unlock Value
  • Flexibility
  • Downside Protection
  • Relative Value

Market Inefficiency

Search opportunistically for complex situations in less efficient markets where there is an imbalance in the supply of, and demand for, capital

Unlock Value

Focus on value drivers, the path to unlock value, and potential exit strategies, which often require active asset management

Flexibility

Approach investment opportunities with flexible capital that allows Värde to operate across both illiquid and liquid assets and securities, as well as both secondary and primary markets

Downside Protection

Seek to invest at a price that allows Värde to unlock or create value, with a strong focus on both discount to fundamental value and downside protection

Relative Value

Assess risk/reward holistically and against the global opportunity set across the Värde platform

Institutional Operating Model

Värde’s institutional operating model supports its investing activities around the world by aligning key business functions and teams.

Värde Investors

Värde provides investment services to a wide array of investors from around the globe.