vulture fund

English

vulture fund (plural vulture funds)

(finance, derogatory) A hedge fund or private equity fund that invests in debt considered to be very weak or in imminent default. Investors profit by buying debt at a discounted price on a secondary market and then suing the debtor for a larger amount than the purchasing price.
- 2018, Ilias Bantekas, Cephas Lumina, Sovereign Debt and Human Rights, Oxford University Press, →ISBN, page 498:
  This chapter discusses current official initiatives designed to curb vulture fund litigation and proposes a rethinking of the doctrine of sovereign immunity as a key measure to curb the predatory behaviour of vulture funds.

hedge fund