Validor Capital India Pvt. Ltd

Validor’ s business has its origins in a UK distressed debt servicing company founded in 1961 and that is still trading profitably. The acquisition of this company strengthened Validor’s network within the distressed debt community and laid the foundation of Validor’s enviable deal flow. The purchase also allowed Validor’s partners to develop a deep understanding of the issues facing the purchase and liquidation of distressed consumer debt portfolios in the UK. Chief among these issues were the inability to tailor solutions for individual customers and to sustain an intellectually stimulating work environment. Realizing that a business model that addressed these issues could create a firm with a unique competitive advantage, the partners developed and refined the Portfolio Cell structure which simultaneously allows for customized solutions on individual client accounts and alignment of analysts’ interests with the firm’s interests. This model is based on the premise that ability to provide customized individual solutions can tremendously increase the aggregate portfolio returns. However, this requires application of intelligence in analyzing real time data and taking on the spot decisions. The search for a rich talent pool of individuals led to the decision of building up an operations base in India. Therefore, now a major portion of the partnership is based in India which allows for optimal execution of the Validor business model. We consider this as ‘skills arbitrage’ as there is a tremendous uplift in terms of the calibre of analysts that can be recruited here, and thereby in the value that can be released from the portfolio and returned to investors.