Investing in distressed

Even as the economy stabilizes, opportunities remain. What should private equity firms know about this attractive market?

While the number of distressed businesses stays at or near record levels, investing in distressed will become an increasingly attractive option as the deal market stabilizes.

Private equity buyers have an advantage over corporate buyers in a distressed environment; it is usually more difficult for public companies to purchase distressed assets or companies because of investment constraints. This is particularly true given the funding, liquidity, and financial reporting challenges associated with distressed companies.