Special Situations vs. Distressed
Seen these two lumped together often but was wondering if there's a distinction between the two.
From what I've gathered so far distressed refers specifically to looking at companies in the shitter and SS is a broader category to describe an opportunistic style of investing that invests across the capital structure / pursues certain "kinds" of misunderstood situations. Functionally, how does this difference play out?
I've heard Moyer and Whiteman are good reads for distressed but do they also cover SS generally? Is there a corresponding book that deals with SS more broadly?
Yes, Moyer is the book to read on distressed side, gives you exposure to high yield in a way too.
You can be a stock market genius by Greenblat would be THE BOOK for special sit.
Spec sits at most firms is just a bucket to throw deals in that aren’t a good fit for the other products the firm offers. It plays out very differently firm to firm.
SS is usually what they do when there aren’t many good distressed opportunities
Kind of how you laid it out. Distressed is with distressed assets/securities and businesses and special sits is with any opportunity that hits the desk that doesnt bucket with any of the firms “usual” investment strategies. Could be preferred stock, mezzanine, minority growth, ABL, etc. special sits usually targets 15+% IRR.
Does anyone have thoughts on BX and bain cap Credit special sits / distressed strategies?
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