Preqin’s comprehensive Fund Manager Profiles product reveals there are currently 298 fund managers based in North America that incorporate a distressed private equity strategy into their overall investment outlook. This includes distressed debt, special situations and turnaround investments. Collectively, these firms have raised just over $739.2 billion in private equity capital over the last 10 years, and have an estimated $181.3 billion available in dry powder. Of these 298 firms, 68 focus exclusively on distressed private equity investments, and have raised $89.2 billion in capital over the last decade.
The top five North American-based private equity fund managers, by aggregate capital raised over the last 10 years, which specifically invest in distressed private equity are Avenue Capital Group, Centerbridge Capital Partners, MatlinPatterson Global Advisers, Wayzata Investment Partners and Bayside Capital.
Avenue Capital Group is a US-based distressed debt investor that operates globally. The firm's headquarters are in New York with offices across Europe and Asia, and has a main objective to make non-control investments in senior debt or debt related instruments of companies in reorganisation or bankruptcy, in distressed industries, and in other special situations where the assets are undervalued. The firm has raised $17.7 billion in the past decade and has an estimated $2.8 billion available in dry powder.
Centerbridge Capital Partners is a New York-based private equity firm focusing on distressed debt investments and is currently investing out of its Centerbridge Capital Partners II fund. The firm seeks to gain majority influence or control over the restructuring of troubled North American companies, and has raised $9.6 billion in the past decade with just over $3.5 billion available in estimated dry powder.
MatlinPatterson’s global distressed control strategy seeks to make investments in severely discounted securities, obligations and assets over which it can exercise corporate control or substantial influence. MatlinPatterson invests in medium to large companies that are either bankrupt or likely to become so in the next 3 to 12 months. The firm does not have a sector or geographic focus, and has raised $8.9bn over the last 10 years.