Distressed & special situations

As banks seek to shed liabilities, there’s an opportunity for GPs to step in and pick up some bargains.

Persistently high rates have transformed the landscape for opportunistic credit strategies, as borrowers seek cheaper refinancing solutions.

SoftBank’s March 2023 uptiering has met resistance in the wake of WeWork’s November chapter 11 filing.

Some US mid-market borrowers are finding things tough, but there can be a lot of value in helping them through their problems.

The long cycle has caused a dearth of workout specialists as lenders and borrowers seek to modify loans.

More and more LPs are embracing opportunities in credit secondaries, but the sector remains undercapitalised.

Weak European growth and rising defaults are tipping companies into the sweet spot for opportunistic credit.

A lack of genuine distressed debt opportunities is leading some GPs to consider whether this strategy is still a valid play.

Tough times may lie ahead for the UK – but will expectations for distressed activity be realised this time?

Several big hitters are now in the market with ambitious opportunistic credit strategies, hoping to capitalise as LPs turn away from conventional distressed plays. So, what has prompted this change of tack?