Alternative Investments
Event-Driven Strategy
Definition
What is Event-Driven Strategy?
A strategy seeking returns from mergers, spin-offs, restructurings, bankruptcies, or other events.
Example in practice
How This Looks in Practice
The portfolioThe complete collection of investments owned by an investor or managed under one mandate. buys merger targets and distressed debtDebt of borrowers in financial difficulty, often trading at a deep discount..
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Related Terms
Alternative Investments
Royalty Company
A company that finances producers in exchange for a percentage of revenue or output.
Alternative InvestmentsStreaming Agreement
A financing arrangement granting the investor the right to buy part of future production at a predetermined price.
Alternative InvestmentsPrivate Credit
Non-bank lending to privately held companies or assets.
Structured ProductsStructured Product
An investment combining debt and derivatives to create a defined payoff.