FICC Focus Bain’s Rufino on Special Sits Strategy: State of Distressed Debt
8 snips
Dec 6, 2024 Angelo Rufino, head of Special Situations at Bain Capital, shares his insights on the hybrid capital landscape, blending debt and equity. He likens the investment approach to a 'marriage' of interests that provides operational value and financing. The discussion also delves into the affected companies like Spirit Airlines and their bankruptcy challenges, along with the impact of current economic policies on distressed debt supply and M&A activities. Rufino's expert perspective sheds light on navigating today’s volatile market.
AI Snips
Chapters
Transcript
Episode notes
Bain Capital's Hybrid Approach
- Bain Capital's special situations strategy blends debt and equity, offering operational value and financing.
- This hybrid model lets companies retain control while giving investors downside protection and equity upside.
Special Situations as an Asset Class
- Bain Capital's $9B special situations fund saw strong LP support, indicating growing recognition of this asset class.
- Investors seek this strategy's balance of debt downside protection and equity upside.
Value-Add Beyond Financing
- Bain Capital's special situations group adds value through operational expertise, not just financing.
- They create detailed value-creation plans, often securing board seats and influencing key decisions for portfolio companies.