Do PE funds stop caring about certain investments once the fund has crushed it?Subscribe
I'm tracking a distressed high yield issuer right now that is owned by a prominent PE firm within an older vintage fund (they've since raised several multi-billion dollar funds). The fund itself also holds several other assets that have crushed it, and thus the fund itself is top decile for that vintage. My theory is that the GPs will be less likely to salvage this distressed investment (via new capital infusion) and more likely to let the issuer simply figure it out for itself, without obviously breaching any fiduciary duties and doing unnatural things. For those who still work in PE and at a senior enough level to have a sense for what I am talking about, can you opine on how you think about these types of situations?