Distressed Investments

Distressed investments involve purchasing securities or assets of companies experiencing financial difficulty or distress, such as bankruptcy or severe cash flow problems. Investors in these situations aim to buy at a discounted price, anticipating that the company's situation will improve or that assets can be sold for a profit. This approach carries higher risk but offers the potential for significant returns if the company recovers or restructuring is successful. Distressed investing requires specialized knowledge of legal, financial, and operational aspects to evaluate the potential risks and rewards accurately.