GCI: Investing in the Distressed
German sewing machine maker Pfaff looked like yet another European victim of Asian competition in 2005, doomed to extinction. Slammed by low-cost Chinese rivals, mounting losses, and crushing debt, the 145-year-old company had been driven close to insolvency. That's when Munich-based private equity group GCI Management (GCIG.DE) intervened, snapping up control and quickly shifting Pfaff's low-end manufacturing to China while restructuring high-tech production in Kaiserslautern, Germany. "We invest in companies and markets where no one else sees the upside," says GCI Partner Albert Wahl.
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