Distressed Investments

Distressed investments refer to the purchase of debt or equity securities of companies that are in weak financial condition, distressed, or bankrupt. Private equity firms and other investors may specialize in distressed investing, aiming to turn around troubled companies and sell them for a profit. Two common distressed investment strategies are purchasing the debt of distressed companies at discounted prices and converting debt holdings into equity stakes, or providing rescue financing in exchange for equity. The goal is to implement major restructurings to restore the business to viability then exit at an optimal time. However, turnarounds often fail. Distressed investing requires expertise in bankruptcy proceedings, debt restructuring, and operational reorganizations to profitably execute deals. When successful, distressed investments can produce extremely high returns due to the low prices of purchasing shares in troubled companies.

Blog

Other news you might be also interested in

Inside Seven2’s Value Engine: Building Resilient, Scalable, and AI-Ready Businesses

François Candelon, Partner for Value Creation & Portfolio Monitoring at Seven2, shares how the firm aligns every investment around a clear “exit animal”—a vision of the company at exit—and uses disciplined execution, AI-driven transformation, and sustainability as levers for resilience and premium valuations. From reengineering core processes with AI to embedding decarbonization into business strategy, Candelon explains how Seven2 builds companies that are not just exit-ready, but future-proof.

Weltix: Reimagining Private Assets From Analog Ownership to Digital Infrastructure

Private markets are entering a new era where trust, compliance, and technology converge. While public markets enjoy automation and transparency, private assets still depend on paper-based, fragmented systems. Antonio Chiarello, CEO of Weltix, argues that the next leap forward is not just digitization, but the creation of digital infrastructures that redefine ownership. In this conversation, he discusses why friction is structural rather than technological, how regulation enables innovation, and how programmable liquidity and transparency can channel more private capital into real economic growth.

Why Family Offices Must Rethink Private Asset Investing: A Conversation with Ivan Nikkhoo

Family offices are playing an increasingly active role in private markets, yet many still struggle with strategy, manager selection, investment discipline, and portfolio construction. In this interview, Ivan Nikkhoo, Managing Partner at N3 Capital and Navigate Ventures, shares his perspective on how family offices should approach private assets, why direct investing often leads to poor outcomes, and where opportunities lie in today’s market.