October 30, 2023
Head of Origination, Bobby Molina, spoke with PitchBook on the opportunities for distressed debt investors in 2024.
The article stated that distressed debt funds saw positive attention in 2020 and early 2021 driven by increased corporate stress from debt payment defaults. Bobby was quoted saying, "Around the second quarter of 2020, many LPs allocated to distressed debt strategies." However, more recently, distressed debt fundraising has decreased. In response, Bobby offered that "some GPs have altered their investment mandates. Instead of pursuing a pure-play distressed debt strategy, they might pitch investors on opportunistic credit funds, which have a more flexible mandate and rely less on a default cycle."
Click below for the link to the full article.