Special Situations/Distressed PE - strategies? process?

Do most distressed/special situations PE funds strategies lie in using their network/i-bankers to source companies that need an equity infusion or might be a good loan-to-own bid? It seems like such a broad area, so I'm curious what the general thought process is behind most of these funds' strategies. If anyone who works or has decent exposure could chime in I'd greatly appreciate it. Thanks.

Comments (3)

 
10/19/17
WSO Monkey Bot:

Hi verno, just trying to help:
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Maybe one of our professional members will share their wisdom: @golfisdabomb @Financier37 @ledger123

Hope that helps.

I'm not so much interested in the liquid side rather than the PE side, i.e.: intermediaries coming to funds with large blocks of distressed securities owned by creditors looking to get dumped.... etc.

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10/19/17
verno:

Do most distressed/special situations PE funds strategies lie in using their network/i-bankers to source companies that need an equity infusion or might be a good loan-to-own bid? It seems like such a broad area, so I'm curious what the general thought process is behind most of these funds' strategies. If anyone who works or has decent exposure could chime in I'd greatly appreciate it. Thanks.

Loan to own.... by definition means LOAN... If you think a company is gonna bust you throw in fulcrum level debt

 
10/22/17

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