Distressed Debt

Extensive experience negotiating restructuring and liability management deals and investing opportunistically across levered credit. 

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Understand our approach to distressed investing

Our distressed debt strategies use a fundamental, value-driven approach to invest in stressed, distressed and defaulted securities. Portfolio managers search for under and overvalued situations across a broad range of asset classes, industries and companies.  

 

In lower default environments, the team evaluates the entire capital structure of stressed, distressed or lower quality credits to determine which securities, if any, offer compelling, risk-adjusted return potential.  

 

In higher default environments, the team members identify attractive investment opportunities by leveraging their extensive bankruptcy and restructuring expertise as well as their ability to assess trigger events and value distressed assets. 

Mindset behind the management

Our distressed debt portfolios are managed with the belief that: 

Distressed securities are priced inefficiently.

Leveraging the team's extensive restructuring experience and applying specialized distressed research allow the portfolio managers to identify potential price deviations from fair value. 

Opportunistic allocations lead to differentiated portfolios.

The team seeks the most attractive investment opportunities across companies’ capital structures, searching for under- and overvalued situations across a broad range of asset classes, industries and companies. 

Business cycle fluctuations drive returns.

Over the course of a business cycle, we believe strategic and tactical rotations between performing and stressed/distressed credits, depending on business cycle conditions and valuations, can add value. 

Connectivity is key.

 

Strong connectivity across our people and pipeline is fundamental to our success. Our special situations and distressed credit team began as a workout group for high yield and leveraged loans. Over years of close collaboration, the teams have established a high degree of connectivity that gives our leverage finance platform support in workout situations and our special situations and distressed credit team extensive resources uncommon to many standalone distressed asset managers.

 

This integration allows us to leverage existing relationships and research across the firm and enables swift action when opportunities arise. We also benefit from the resources of our larger organization, coupled with the strength of our long-term trading relationships, providing us access and scale across our leverage finance platform.

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