---
title: "Finding Value Where Others See Risk: How DUBAG Turns Distress into Opportunity
"
url: https://vestlane.com/blog/finding-value-where-others-see-risk/
publishedDate: 2025-07-18
author: "Polina Medvedeva"
readingTime: 6
description: "How DUBAG Turns Distress into Opportunity.
"
---

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


In private equity, *distress* often signals danger. For [**Petar Angelov**](https://www.linkedin.com/in/petar-angelov-cfa-035b23116/), Head of Finance at [**DUBAG Group**](https://dubag.eu/), 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**

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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***](/success-stories/dubag)*,* ***Lucanet****, and* ***AssetMetrix*** *to automate compliance, consolidate reporting, and reduce operational overhead,*

*he shares.*

With Vestlane in particular, DUBAG digitized [investor onboarding](/product/investor-onboarding), [KYC/AML](/kyc-and-aml), and [name screening](/blog/automated-name-screening-with-complyadvantage)—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.*

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