Oliver Smiddy

When Spanish regulators approved proposals to reform the country’s restructuring regime last month, it heralded a sea change in the way ailing companies would be treated, and had major implications for distressed debt investors.

Banks’ reluctance to crystallise losses and highly liquid credit markets has made life tough for distressed debt investors. But the brave among them have plunged into riskier situations and markets and used their expertise to deliver impressive returns.

In a piece published in the Wall Street Journal last month, Blackstone president Tony James sought to differentiate ‘market-based lenders’ - private debt funds to you and me - from banks. But will his bid to stave off regulatory scrutiny be successful?

Real estate debt funds can deliver returns on a par with core real estate equity investing with less risk, particularly if they seek out opportunities outside primary locations, according to a Partners Group report, writes Oliver Smiddy.

Kelli Roiter, managing director and head of Jefferies Strategic Capital Opportunities, speaks with Sam Sutton about market shifts special situations, distressed and private debt over the last five years.

The increasing supply of opportunities means today’s distressed market is a favourable one for nimble investors, write Stuart Mathieson and Neil Godfrey.

The news on Thursday that French private debt firm Tikehau had secured a minority investment from asset management behemoth Amundi demonstrated just how important private debt is becoming as an asset class.