Red Pine seeks to generate high, risk-adjusted returns for its investors by taking advantage of attractive asset-based and real estate-based investment opportunities throughout the United States and has recently expanded into Canada and the Caribbean on a limited basis. Red Pine generally targets cash flowing investments and originates loans backed by tangible and intangible assets that are below the radar of larger, less agile investment firms.
When underwriting the acquisition of a company or real estate asset, Red Pine takes a flexible investment approach in order to pursue the most compelling opportunities and unlock hidden value. Red Pine’s ventures often invest directly in private companies. In other instances, Red Pine will take public companies private. Red Pine may also acquire assets on a stand-alone basis or as the foundation for building a company from the ground up, if doing so provides an effective means of owning and operating assets. In distressed situations, Red Pine may purchase corporate debt, acquire assets or provide rescue financing, including debtor-in-possession financing, in order to lead a corporate restructuring or recapitalization. In all cases, Red Pine focuses on control-oriented investments where Red Pine can create value through active involvement.
A key way that Red Pine seeks to create value within its portfolio companies is by helping companies grow through corporate and real estate acquisitions. Red Pine works in partnership with management to optimize the capital structures of its portfolio companies and to identify incremental investment opportunities that will be accretive to their core operations.
Red Pine has a history of acquiring companies and real estate and structuring loans in connection with assets that have unrecognized value. The true value of such businesses and real estate opportunities may remain unrealized because (a) the asset is in transition or needs to be transitioned, and that transition has not yet occurred; (b) there is a dislocation or disconnect between the true ability of the asset to generate revenue and the reflection of the asset’s value in the marketplace; or (c) there is a misperceived imperfection in the asset which has not been properly analyzed and quantified.
The types of investments made by Red Pine and its affiliates include convertible preferred stock purchases, sale-leaseback financing, restructurings and recapitalization, sponsorship of tenant-in-common financing, direct corporate investments, direct asset investments, sponsorship of leveraged acquisitions and management led buyouts, going private restructurings, co-investments with private equity firms and preferred equity or mezzanine financing.