Drum Capital seeks to identify “best-in-class” managers with consistent track records of distressed, turnaround and special situation investing. Distressed investing encompasses investments in the debt and/or equity of companies that are facing financial, macro-economic or operational challenges and are often likely to default.
Distressed investing strategies are diverse and span varying levels of control, capital structure participation and liquidity. Below are a select group of strategies and disciplines that exist in today’s distressed investing environment:
- Distressed Debt Trading
- Event Driven
- International Distressed Investing
- Non-Performing Loans
- Trade Claims
- Turnaround / Underperforming
Market opportunities are constantly changing, our dynamic allocation process factors in historic and current performance, and gives strong consideration to near and long-term market forecasts. We seek underlying fund managers that have strong track records investing in distressed debt and/or equity in anticipation of a turnaround and who are able to identify and invest in the fulcrum security in order to emerge as the majority equity owner post a bankruptcy restructuring.
Drum Capital believes that the countercyclical nature of distressed investing, compared to buyout and venture capital investing, provides significant diversification to investor’s private equity portfolios.