Which investment strategy may involve assets needing recapitalization?

The investment strategy that may involve assets needing recapitalization is the Opportunist Strategy. This approach typically focuses on identifying undervalued or distressed assets that have the potential for significant appreciation through active management or redevelopment. Recapitalization is often necessary in such strategies to unlock the value of these acquired assets, which might include restructuring existing financing or bringing in new capital to support renovations, improvements, or other enhancements that can lead to increased income or value.

The Opportunist Strategy hinges on the potential to realize gains through more aggressive management or investment approaches, and recapitalization plays a crucial role in this process by providing the necessary resources to effect meaningful changes. Investors using this strategy are often looking for opportunities where they can take a hands-on approach to stimulate asset performance.

In contrast, other strategies like Core-Plus or Stable typically focus on lower-risk investments that are already performing well and may not require significant recapitalization, as they are built around steady income generation rather than turnaround situations. The Value-Add Strategy may involve some modifications and improvements, but it usually targets assets that have a manageable level of existing cash flow, distinguishing it from the more aggressive and high-risk nature of the Opportunist Strategy.