This content is from: Portfolio
Distressed Investments: Profiting from Economic Upheaval
Private equity firms are raising money for distressed-assets funds like never before.
But the distressed-assets arena isnt without its challenges. You want to fix everything, like a doctor treating a sick patient in the hospital, he said. But the companys executives and directors usually want you to be out of there as quickly as possible, whether or not youve addressed all the problems. For instance, Hostess Brands, the venerable company which produces the Twinkie, has undergone two restructurings in recent years. Another panelist, Centerbridge Partners senior managing director William Rahm, offered a solution: Weve never replaced a CEO and then lamented we did it too quickly.