PE Clueless About Bankruptcy and Distressed Investing

February 23, 2009

Here’s Crystal Capital’s Edward Siskin and The Heico Companies’ Michael Heisley saying that 90% of private equity fund managers are “clueless” as to how to implement turnaround plans in distressed investments, and how many of these same managers are also not familiar with bankruptcy codes:

 

And they’re right! Too many firms recruited number crunchers and analysts, and not enough people with operational and strategic backgrounds. Competency in financial engineering won’t cut it these days.

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