Having spent the past 18 years at SB360 Capital Partners (formerly SB Capital Group), I can say with certainty that the turnaround industry has evolved. What surprises me most is how we have been forced to change our own industry, even though at times it didn’t seem broken. But if you think about...
Retail Apocalypse and Amazon Effect have become common vernacular over the last few years. The catchphrases certainly grab the attention of not just the general public but of the finance and turnaround communities as well. In an article headline, they serve as surefire clickbait. And as panel...
The availability of capital for private companies is at an all-time high. According to Preqin’s Q3 2018 Fundraising Report, global private equity dry powder currently sits at approximately $1.1 trillion, while global private debt dry powder was at a record $281 billion as of September 30, 2018...
Distressed investors may see value in individual assets held by a distressed company or pledged to its lender, rather than in the company as a whole. These investors see opportunity in these assets, but realize significant risk in acquiring them. To assume this risk, they seek a certain level of...
So many times, turnaround professionals are engaged in situations involving companies that have little or no liquidity or that appear to lack access to capital. Frankly, businesses that lack liquidity are one of the main reasons the turnaround industry exists. As such, it is imperative that...
Since the great financial crisis of 2008, direct private credit investments outside the banking system have grown exponentially. Both regulation and competition have forced the traditional regional banking model to consolidate and focus on larger borrowers, which are easier to service than smaller...
In today’s world, the ability to move money around the globe with relative ease, combined with increasing competition among investors who require double-digit returns, has made Europe—and more specifically, Germany—an attractive venue for purchasing assets. Due to Germany’s large industrial base,...
The past few years have brought a number of large rights offerings in bankruptcies in the energy, healthcare, and retail sectors. Between January 1, 2015, and December 1, 2017, more than $5.5 billion was raised through rights offerings or private placements in more than two dozen large bankruptcy...
The distressed investor considers investing in securities of companies that are either in bankruptcy or are approaching bankruptcy. Typically, these companies have outstanding claims greater than the value of the assets and are experiencing difficulty in servicing their debt. There is a real...
In the robust financing environment of 2017, commercial bankruptcies leveled off from credit-crisis highs. Through the first three quarters of 2017, commercial bankruptcies totaled 17,371, a significant decline from the 2009 peak year, when 45,510 commercial bankruptcies were filed in the first...
