Opportunities in Distressed Corporate Assets & Real Assets Dislocations
PM Alpha recently hosted an insightful discussion with four industry experts at our Thematic Webcast across the two investment themes of ‘Global Corporate Distress & Dislocations’ & ‘Real Assets Dislocations’. The experts shared their views on the current landscape and private markets opportunities across both the US & European markets.
PM Alpha’s CEO Tom Douie and CIO Alexis Weber were joined by seasoned speakers from:
US Perspective: Driving Dislocations leading to Distressed Opportunities:
1.???Managers are seeing more motivated sellers and the start of distressed assets sellers - those focusing on managing liquidity in the face of refinancing risks - as interest rates remain higher for longer than expected, alongside an increased risk of a ‘hard landing’ in the US.
2.???Broad opportunity set with three key elements: repricing, refinancing, and restructuring of large corporate assets and SMEs. Non-traditional lenders, like specialist distressed and special situations investors, can capture assets from corporates at reduced valuations and better terms.
3.???Differences vs. distressed environment post GFC: current environment fundamentally different to the GFC, when the reaction from monetary authorities and regulators was to cut interest rates and inflate asset values to stimulate growth. Today, increased funding gaps caused by higher interest rates makes it a more dynamic backdrop for specialist investors across distressed, special situations and real assets.
PM Alpha invites you to discover our exclusive live product – a blend of 3 specialist strategies focused on distressed & special situations – on our platform*: https://www.pmalpha.co.uk/theme-global-distressed
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Global Dislocations leading to opportunities in European Real Assets: ?
1.???Real Assets, typically favoured by investors for their ability to adapt to volatile market environments and their potential to protect against inflation, remain an attractive asset class in the current inflationary context.?With interest rates expected to remain higher for longer, the risks of increased dislocation and repricing in real asset markets continue to grow as assets owners are unable to refinance their maturing debt. This presents compelling opportunities for non-traditional lenders in real assets financing to acquire assets at stressed prices, including in sectors such as commercial real estate and transportation.
2.???A Case for European Real Estate Market: The European real estate market has been witnessing a repricing of assets, notably in the UK market - spurred by the fiscal policy shock of the Truss government in September-October 2022 – but similar price adjustments could yet come to other European markets. These repricings, in addition to recent deleveraging pressures, present increased entry opportunities across various RE sectors, from selective value in retail and logistics, to office space – a sector being particularly impacted by ESG considerations.
PM Alpha invites you to discover our investment theme of ‘Real Assets Dislocations’ and upcoming thematic product pipeline on our platform*: https://www.pmalpha.co.uk/theme-real-asset
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