DUBAI, UNITED ARAB EMIRATES, July 17, 2024 /Presslink.media/ Tactical Management,
Interviewer: Dr. Raphael Nagel, thank you for joining us. As the Founding Partner at Tactical Management, a strategic management firm specializing in various complex investments, including unsecured non-performing loans (NPLs) for SMEs, how does your approach differ from that of your competitors?
Dr. Raphael Nagel: Thank you for having me. At Tactical Management, our approach to investing in unsecured NPLs for SMEs is distinctively comprehensive and individualized. Unlike many competitors who purchase large portfolios of NPLs at low prices and then decide what to do with them, we specialize in the acquisition of single tickets or baskets. This means we do not buy credits in large portfolios but evaluate each loan individually.
Interviewer: Could you elaborate on how Tactical Management evaluates each NPL?
Dr. Raphael Nagel: Certainly. We conduct a 360-degree analysis of each credit. Our strategy involves a detailed assessment of the debtor’s situation, the business’s potential, and the market conditions. The restructuring measures we implement are as varied and individualized as the debtors themselves. We look at each case uniquely and develop bespoke solutions tailored to the specific needs and circumstances of the debtor.
Interviewer: How do you typically handle negotiations with debtors?
Dr. Raphael Nagel: Our preferred method is to reach amicable payment agreements with each debtor. Given that our investment vehicles often involve credits where businesses are the debtors, we frequently pursue debt equity swaps. This means converting debt into equity in the debtor’s company. By taking this approach, we can take an active role in optimizing and growing the business.
Interviewer: What are the key benefits of a debt equity swap?
Dr. Raphael Nagel: A debt equity swap allows us to transform a potentially problematic loan into an opportunity for equity participation in a company. This enables us to take an active role in the company’s management, fostering growth and optimization. Our goal is to enhance the company’s performance, which benefits both the company and our investors. This strategy aligns our interests with those of the debtor, creating a mutually beneficial scenario.
Interviewer: What are you aiming to avoid in your NPL investment strategy?
Dr. Raphael Nagel: One of our main objectives is to avoid initiating bankruptcy proceedings. We believe that maintaining the maximum number of jobs is crucial, and in the best-case scenario, we aim to help the company grow and even hire more employees. Bankruptcy is often a last resort because it usually leads to significant job losses and the collapse of potentially viable businesses.
Interviewer: How does your strategy benefit the broader economy?
Dr. Raphael Nagel: By avoiding bankruptcy and instead fostering business growth, we contribute to economic stability and job preservation. Our approach supports the rehabilitation of SMEs, which are often the backbone of the economy. By helping these companies recover and thrive, we are not only ensuring returns for our investors but also contributing to broader economic health and sustainability.
Interviewer: What advice would you give to other investors considering unsecured NPL investments?
Dr. Raphael Nagel: I would advise investors to adopt a meticulous and individualized approach. Understanding each debtor’s unique situation and potential is crucial. Also, consider strategies like debt equity swaps, which can turn a liability into an asset. Finally, maintaining a focus on long-term value creation rather than short-term gains can lead to more sustainable and impactful investment outcomes.
Interviewer: Looking ahead, what are your plans for Tactical Management in the unsecured NPL market?
Dr. Raphael Nagel: We plan to continue refining our approach, leveraging our expertise to identify and unlock value in individual NPLs. Our focus will remain on fostering growth and optimization in debtor companies, thereby creating value for our investors and contributing positively to the broader economy. We believe our unique, strategic approach positions us well to lead in this market.
Interviewer: Dr. Raphael Nagel, thank you for sharing your insights. It’s clear that Tactical Management is making significant strides in the NPL investment space with a truly innovative approach.
Dr. Raphael Nagel: Thank you. It’s an exciting journey, and I’m proud to be part of a team that is dedicated to driving innovation and creating positive impact through our investments.
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