News & Events

Funds Partner Peter Gilman was quoted in a Law360 article on “How To Help PE Clients Handle The Distressed Debt Dip,” which discusses recent trends in distressed debt fundraising. In the article, Peter addresses the impact that the accumulation of “dry powder” in distressed debt funds and the expansion of private credit strategies have had on recent distressed debt fundraising. “The buildup of dry powder is in some ways pulling the oxygen out of the room for new distressed debt fundraising,” he said. “LPs are reluctant to commit additional capital to strategies where they have not seen their capital deployed or received meaningful distributions.” Peter also discusses the importance of understanding the key terms and characteristics of underlying private credit instruments as part of preparing fund documents to ensure that they dovetail with the sponsor’s commercial objectives and investment strategy.

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