International Institute for Private Equity and Investment Banking

The Center for the Study of Distressed Company Private Equity Investments is interested in studying what it takes to become successful in the field of distressed company and distressed asset acquisitions, investments and restructuring. In the current environment, having the necessary skills and abilities, and a robust platform that has been fine-tuned to making and handling such investments, will be of great value in strengthening long term returns for the Private Equity investors that are strong enough and brave enough to venture into this field.

Private Equity Advantages and Opportunities

Private equity investors have a number of significant advantages over corporations and corporate buyers when dealing with distressed investments, companies and distressed asset acquisitions. Distressed companies almost always require significant restructuring, and bring with them funding, liquidity and financial reporting challenges and this is much more difficult for public companies to handle. By taking the company private, the private equity investors can eliminate the reporting issue and can remove the great burden of public pressure that the public company buyers cannot do. This leaves the private equity investor with a burden of having to handle only the operational challenges of the acquired company but they can do this in a more protective environment away from prying eyes.

Distressed company buyers must become experts at distressed investment due diligence and must have an extensive body of relevant experience and expertise at their disposal, if they wish to succeed and to be able to profit from the higher return potential that such deals provide. On the other hand there are very few private equity firms and hedge funds that are in the position to compete in this space, making this a very profitable field for those who can stomach the difficulties that come with such deals.