VDP was a private equity fund, located in BVI, holding a wide range of portfolio companies involved in water bottling, dairy products, and confectionery products. The portfolio companies, valued at over $1 billion, were located in the Commonwealth of Independent States (“CIS”) and the Balkans.
In the four years prior to KRyS Global’s appointment, VDP had undergone multiple sales processes; however, those processes had failed and VDP had not been able to exit its positions and return investments to its stakeholders.
The portfolio companies were suffering from serious liquidity issues and were the subject of freezing orders issued in Russia, which had a chilling effect on any sale efforts. This fact, combined with conflicts between stakeholders in the fund, limited VDP’s ability to successfully exit its positions.
KRyS Global took control of the operating entities and stabilised the business for the purposes of preparing the assets for sale.
KRyS Global set up data rooms and negotiated with a number of investment banks to identify buyers for the portfolio companies. KRyS Global managed an extensive due diligence process, involving both financial sponsors and strategic buyers.
Simultaneously, KRyS Global successfully dealt with litigation arising out of Russia, which sought to freeze shares and issue warrants against the companies’ bank accounts.
KRyS Global was successful in having the various legal actions set aside, and through the sale process had identified a significant purchaser for all of the underlying assets, at values significantly higher than initially contemplated.
During the 2 plus years of KRyS Global’s involvement, the value of the assets has been substantially improved.