After a surge in fundraising for distressed debt strategies at the height of the covid pandemic, and an opportunity set that failed to materialise, some investors are starting to question whether distressed is a strategy that has had its day.
For Taj Sidhu, head of European and Asian private credit at Carlyle, the relative absence of some conventional distressed opportunities is indicative of the strategy’s demise: “We are not seeing too many distress or distress-for-control situations, and we are also not convinced that is going to be a big opportunity.
