Senior Debt to Distressed Credit in Asia
Hello guys, has anyone made the move from senior lending to a distressed debt fund? What incremental credit skills are needed for this - a deep understanding of security / recovery mechanisms, and anything else?
Also, can anyone who has worked in Asia speak to the difference in contractually expected recovery (based on finance docs etc) vs actual / practical recovery? Understand variation here is often driven by nuances of local regulation / court systems and business practices.
Appreciate any inputs guys
Anyone?
Anyone?
Going from a senior credit shop to a special sits or distressed credit shop will be very difficult unless you can get your hands on more special sits senior investments (DIP, rescue financing, etc.) or workouts / Restructuring’s within the firms existing portfolio. It’s certainly doable, but you will be at a disadvantage to RX and LevFin bankers so the goal is demonstrating that you have made up for the knowledge through understanding the distinction between being a vanilla senior secured lender and a distressed investor finding value where others cannot and sifting the legal docs / structuring of downside protection.
Thanks mate, just on one of your points above - we work with lev fin guys and it seems they only deal with senior debt too, wouldn’t they be in the same bucket?
Not necessarily, there is a lot more process involved when you’re working at a levfin bank that translates well to the buyside; levfin bankers also work on large, complex transactions that can range from a syndicated first lien offering to underwriting a hairy Apollo deal that you need to get through your credit committee. Generally there is a lot less complexity within middle market deals especially when you’re taking only a chunk of syndicated debt. Deals in which you are Agent however are good ones to talk about as you get to sig a bit deeper into those businesses.
Thanks mate do you have any examples of a distressed / special situations investment? Would be interesting to get a sense of how these investors get comfortable / build credit thesis around recovery of businesses post investment
Harum quasi a rerum aut doloribus quae dolor. Reiciendis exercitationem voluptatem possimus aperiam possimus unde. Ipsum sapiente et sit est nostrum at provident. Assumenda fugit placeat sunt iusto voluptas. Est tempore et voluptatem non corrupti dolorem facilis.
Et rem alias in accusamus deleniti dolor iusto. Magnam laboriosam est doloremque vitae. Excepturi ut dolorum reprehenderit quas voluptatem. Vel optio est accusamus.
Iste possimus laudantium ratione illum dignissimos est voluptatem. Recusandae animi aut quasi magnam architecto. Occaecati amet a quis omnis et qui. Qui voluptatem nam omnis ipsa est tempore placeat. Ut neque explicabo et dolores eos nihil aut. Beatae iste quis consectetur ullam hic facere ducimus vero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...