Middle Market Opportunity
Drum Capital believes that the middle market for distressed debt and turnaround presents an attractive opportunity set, particularly as compared to Large Cap, or Mega Fund, investment managers. While Mega Funds represent the majority of all distressed capital raised in the institutional marketplace, they participate in only a fraction of the number of distressed, special situation and turnaround deals closed each year. Typically, Large Cap transactions are highly brokered and highly competitive. By contrast, Drum Capital believes the Middle Market is an inefficient, target rich environment, with thousands of transactions per year, allowing skilled investment managers greater potential for excess returns.
Drum Capital Management focuses on selecting the best distressed investment managers who we believe are uniquely positioned to uncover the most attractive opportunities in the market. Our fund size is optimized so Drum Capital can be an active deal maker and deal participant in the Middle Market space.