Distressing Times

Financial sponsors, facing a lull in the LBO market, are launching new funds to capitalize on the credit market dislocation and special situations.

April 28, 2008

'Opportunity' is the latest buzzword among financial sponsors, which, as in years past, are moving like a gang of gold prospectors towards what is perceived to be the next big private equity treasure: credit. The chance to generate solid, risk-adjusted returns by investing in various forms of debt has spurred several big-name private equity firms to launch new debt funds, seeking to invest in the massive backlog of leveraged buyout debt arranged in the past few years, and distressed credits.

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