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Turnaround Private Equity Fund Managers

by Nicholas Jelfs

  • 08 Feb 2012
  • PE

Following the recent announcement of the UK retailer The Peacock Group entering into administration, Preqin has looked at the universe of private equity firms offering turnaround investments. There are currently 280 private equity firms across the globe that target turnaround opportunities, either exclusively or as part of a broader investment strategy, according to Preqin’s Fund Manager Profiles product. Only seven of these firms provide turnaround funding exclusively, yet a further 44 provide turnaround investing as part of a strategy focused solely on distressed private equity.

Collectively, these 51 firms have raised a total of $29.7bn in capital commitments over the past 10 years, and have an estimated $8.2bn available in dry powder for further investments in distressed debt, special situations and turnaround opportunities. 24 of these firms are based in the US, eight in the UK and a further nine across the rest of Europe. The remaining 10 firms are located across Asia and Rest of World.

Better Capital is the largest fund manager by total funds raised over the last 10 years that makes turnaround investments exclusively. The Guernsey-based firm targets UK companies that operate across a diversified range of sectors through two listed funds totalling almost $570mn. The largest fund manager by total funds raised over the last 10 years that targets turnaround opportunities as part of a broader distressed private equity strategy is Avenue Capital Group. The New York-based firm makes distressed debt investments across the globe in companies that are in reorganisation or bankruptcy, in distressed industries, and in other special situations where the assets are undervalued. It has raised a total of $17.7bn in capital over the last 10 years, and has an estimated $3.3bn in available dry powder.

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