A Wednesday morning panel at The Deal's Fifth Annual Private Capital Symposium examined the opportunities emerging in the distressed investing marketplace. Richard Shinder, a director at Goldman Sachs Special Situations Group, spoke about the important changes that came out of covenant-lite debt terms.
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"There are important factors affecting the marketplace. Even in deals that weren't covenant-lite, the covenants were looser in general," said Shinder. "What that will mean through this cycle is that those early warning signs that you had in prior cycles won't be there anymore."
"Because you will have not had the intervention from turnaround advisers, businesses will be presented to [distressed investors] in a different state," he continued, "because the opportunities to save the patient will have been missed. They'll be more badly damaged from an operational point of view because there was no earlier intervention." - George White
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