Unlock Value from Defunct Investments with Scavenger Cap
At Scavenger Cap, we specialize in acquiring securities from dead or defunct companies, offering a seamless exit for investors.
Welcome to Scavenger Cap
About Us
Like a Scavenger that feeds on dying or decaying organisms, Scavenger Cap acquires securities in dead or defunct or dud companies allowing investors to exit from these investments.
These entities may have shut operations, involved in ongoing tax or legal disputes or has no employees to run them, or consuming management bandwidth or any other reasons whatsoever.
Scavenger Cap is run by a group of experienced professionals, Chartered Accountants, Lawyers, and specialists from the field of finance and structuring advisory backed by Capital (Fund based and/or Fee-based model).
We have successfully helped numerous Family offices, Funds, Founders, Corporate Groups, etc. navigate the process of divesting their investments, ensuring a smooth and efficient exit.
Our Propositions
Exit from Investments
Exit from any investment, whether dead or defunct or dud or for any structuring purposes
Structure Model
Fund-based and/or Fee based model available
Valuation
Buying shares/securities/CCPS, etc at negotiated value, enabling investors to realize capital losses
Swift Turnaround
Quick transaction turnaround time with Definitive Agreements signed within 4 weeks* of initial contact
Disputed Settlements
Exit of complicated or disputed investments, including these having statutory liabilities, court cases, etc
Frequently Asked Questions
Scavenger Cap will purchase stocks, notes, warrants, SAFEs, and other Indian company securities at a negotiated value from owners and at a price that benefits both parties.
There could be multiple reasons: –
- We understand that not all the investments make money, most of the times investors lose money. Yet from the loss-making investments, the investors can book their Capital losses in the year of their choice and set it off against Capital gains from investments which made money, saving the taxes payable on such gains
- Sometimes the founders have shut their operations and the formal closure of the company takes time, to help them move on
- Some investors/funds/PE firms have a limited life and need to exit
- There may be statutory litigations in the Company or disputes between the shareholders/founders and it may not be worth your patience
Our focus is where investors or founders who want to exit their investments. We excel at liquidating assets, handling complex legal and financial matters, and required maximizing returns from non-operational assets.
Scavenger Cap values companies based on a comprehensive assessment of their underlying assets. This includes tax credits, losses, litigations, etc. Our valuation methodology considers potential liquidation values and market conditions to determine a fair offer and also evaluating costs of such companies.
We did our first transaction in 2004 (of a tech company which had disputes between the founders and legal cases filed against each other) and our last one in 2023 (an incubator which invested a number of startups, some exited and some failed). We have no targets and no desperation to do deals unless it’s makes commercial sense for us to do it.
Scavenger Cap has different strategies depending on the type of stocks/securities bought. Usually, we hold the Securities in long term and sometimes enable liquidation.
Yes. In this case, we will also replace the directors (with indemnities built in).
Yes, founders can sell their shares and exit their company while leaving the legal closure proceedings to us.
Yes, Scavenger Cap can acquire companies with significant liabilities/litigations or regulatory issues. Our expertise lies in assessing and managing such complexities and taking care of the same for foreseeable future.
Yes, considering the funding winter and current illiquidity of investments in the startup space, Scavenger Cap can be a go to option for the AIFs to get exit from its portfolio companies which are leading to delay in its closure process.
Scavenger Cap takes a holistic approach, considering opportunities across a wide spectrum of industries and company sizes. Our expertise lies in evaluating dead or defunct investments regardless of their sector or scale.
Not at all, this is not any advice. Please refer to your tax or legal advisor for any of the issues on tax or legal matters.
No, there are no such requirements. These are legitimate purchases and sales transactions for securities. We have extensive experience since 2004 in handling these transactions to avoid complications.
- We receive an inquiry on the website
- We respond to the inquiry with details required from you
- On receipt of these details, we will arrange a call with you
- Post this, we will send you an offer
- Once the offer is accepted and signed, we will proceed to send you our SPA
We have not had any such experience, but we are open to considering overseas investments on a case-by-case basis if there is a value proposition.
