Distressed Debt in Private Equity

Overview:

Introduction:

This workshop provides participants with an in-depth understanding of distressed debt investments within private equity. Participants will learn how to identify, evaluate, and manage distressed debt opportunities, focusing on financial restructuring, legal frameworks, and exit strategies.

Workshop Objectives:

By the end of this workshop, participants will be able to:

• Understand the fundamentals of distressed debt investing in private equity.

• Analyze the financial and operational health of distressed companies to identify investment opportunities.

• Develop strategies for restructuring, turnaround, and maximizing value from distressed assets.

• Navigate legal and bankruptcy proceedings involved in distressed debt situations.

• Execute exit strategies, including debt-to-equity conversions and company sales.

Target Audience:

• Private equity professionals.

• Investment analysts and managers.

• Financial advisors and consultants.

• Legal professionals specializing in bankruptcy and restructuring.

• Corporate executives and financial officers.

Workshop Outline:

Unit 1:

Understanding Distressed Debt in Private Equity:

• Overview of distressed debt investing and its role in private equity.

• Types of distressed debt: bankruptcy, near-default, and underperforming companies.

• Key financial indicators for identifying distressed investment opportunities.

• Differences between distressed debt and other types of private equity investments.

Unit 2:

Restructuring and Turnaround Strategies:

• The role of private equity in financial and operational restructuring.

• Negotiating with creditors and stakeholders for debt restructuring.

• Legal aspects: bankruptcy, insolvency, and debt-for-equity swaps.

• Steps to improve company operations for financial recovery.

• Tools for assessing post-restructuring company performance.

Unit 3:

Exit Strategies and Risk Management:

• Common exit strategies: selling the debt, debt-to-equity conversions, and company sales.

• Managing risks in distressed debt investments.

• Maximizing value through liquidation or turnaround.

• Regulatory considerations in distressed debt exits.

• Future trends and opportunities in distressed debt investing.