Finding Value Where Others See Risk: How DUBAG Turns Distress into Opportunity

In private equity, distress often signals danger. For Petar Angelov, Head of Finance at DUBAG Group, it signals opportunity.

Most of the companies we acquire have a problem—or simply no longer fit where they are,” Petar explains. “Our job is to figure out whether they can thrive again under the right ownership and operational model.

The Special Situations Playbook

DUBAG Group, based in Munich, has quietly become one of Europe’s most active investors in special situations—carve-outs, turnarounds, and underperforming businesses across the mid-market.

Their current portfolio spans seven companies across ten countries, with operations ranging from combustion engine manufacturers to industrial component providers. But the business model is consistent: acquire under pressure, move fast, and build back value.

Petar’s role? Make sure the finance function keeps up.

Turnarounds are messy. We need clean numbers from Day 1, reliable liquidity planning, and full transparency with our investors. That’s non-negotiable.

Why Most Funds Avoid Distress—and Why DUBAG Leans In

Distressed assets often come with operational blind spots, cultural misalignment, or disjointed data systems. For most GPs, that’s enough to walk away. For DUBAG, it’s the starting point.

“We don’t bet on turnarounds with hope. We go in with operational leadership already identified, liquidity mapped out for 24 months, and restructuring plans prepared even before closing,” says Petar.

And they don’t just dip in—they own 100% of every portfolio company, often replacing the C-level team and embedding DUBAG's own transformation officers.

This high-involvement approach is critical when you're dealing with companies that have lost strategic focus or financial discipline. But it also means the GP must be ready to deliver clarity quickly—especially to LPs.

Finance at the Frontline

What makes DUBAG's model sustainable is how they’ve scaled financial oversight. Petar oversees both fund-level and portfolio-level reporting—something that would traditionally require a much larger back office.

We’ve invested in platforms like Vestlane, Lucanet, and AssetMetrix to automate compliance, consolidate reporting, and reduce operational overhead,

he shares.

With Vestlane in particular, DUBAG digitized investor onboarding, KYC/AML, and name screening—reducing email traffic, improving audit readiness, and saving real time.

“A team of two can now manage what used to take 20. And that’s critical when you’re operating across 10+ countries.”

Strategic Exits, Not Market Timing

Unlike many growth-stage funds that depend on IPO windows or multiple expansion, DUBAG exits are often led by strategic buyers.

We don’t chase market timing—we look for fit. If our portfolio company complements a larger player’s platform, we exit. If not, we keep building. Strategic buyers think differently, and that’s our strength.

This exit discipline has helped DUBAG navigate volatile markets without disruption.

What LPs Want from a Turnaround Fund

Institutional investors are no strangers to risk—but they want confidence in how that risk is managed. For Petar, that means proactive communication, detailed reporting, and no surprises

If you want LPs to reinvest, you need to show control. That starts with transparency—not just in the portfolio, but in how you operate as a GP.