NextWave Private Equity
Differentiated Opportunities for Special Situations Investing
Feb 13, 2025
Angelo Rufino, a Partner at Bain Capital and expert in special situations investing, joins Bridget Walsh to discuss unique opportunities in the investment landscape. He highlights the balance between risk and reward in hybrid investment strategies. Rufino shares insights on asset-based financing, especially in aviation and real estate post-COVID. They delve into managing special situations, emphasizing tailored approaches and strong management teams. Additionally, they explore the potential of early-stage asset classes in today’s volatile market.
17:34
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Quick takeaways
- Special Situations investing has evolved to balance private credit and equity characteristics, enabling unique hybrid deal structures for investors.
- A thematic and sector-focused approach, combined with tailored due diligence, is crucial for identifying differentiated investment opportunities in this space.
Deep dives
Differentiated Opportunities in Special Situations Investing
Special Situations investing has evolved significantly over the past decade, transitioning from a focus on distressed assets in secondary markets to a more nuanced approach that balances private credit and private equity characteristics. Investors in this space seek to capture the upside potential of equity while maintaining downside protection typically associated with debt-like investments. This hybrid model enables funds to structure deals that offer unique return profiles, including convertible features and warrants, which enhance potential gains. For instance, investing in aviation during the pandemic illustrated how capitalizing on stabilized markets can yield favorable outcomes through strategic execution.
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