FICC Focus SVP's Geenberg on Distressed Turnarounds: State of Distressed Debt
Jun 13, 2025
David Geenberg, the Head of North American Corporate Investment for Strategic Value Partners, shares insights on distressed debt and investment strategies. He emphasizes the importance of exit strategies and thoughtful assessments before making deals. The discussion also highlights the challenges of smaller companies facing bankruptcy and the innovative approaches SVP employs to blend credit investment with operational management. Additionally, Geenberg assesses the evolving landscape post-COVID and its implications for liability management in the credit market.
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SVP's Unique Investment Model
- Strategic Value Partners (SVP) uniquely combines debt and equity investment across middle market to large cap, in both the U.S. and Europe.
- They control about 20 companies and 100,000 employees, blending credit and private equity skills in their approach.
Fix Basic Operations First
- Focus on improving basic operational issues like leadership, pricing, and procurement to enhance EBITDA.
- Bring in specialized expertise, such as CHROs, to rebuild company talent and management effectively.
Plan Exit Strategies Early
- Always consider exit strategies upfront to avoid buying value traps without clear strategic buyers.
- Use an exit committee to evaluate and plan exit routes annually for large illiquid investments.