Vulture Capitalist

A vulture capitalist is a type of investor that invests in or purchases distressed companies for profit. They typically purchase companies that generate revenue, but are on the verge of bankruptcy due to mismanagement and overspending. Once acquired, they start cutting costs through layoffs, a reduction in benefits, and a sale of exorbitant assets. Occasionally they also split off divisions of the business to recoup their initial investment and minimize their risk.

Other Terms