vulture fund definition by Wordo

Noun

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

.