The pain is yet to come
Plenty of capital has been raised in anticipation of a distressed opportunity that may take a while to materialise.
Distressed debt has been a major focus for investors in recent years, as can be seen from our chart above. Although fundraising this year has been dealt a setback by the pandemic, capital for distressed strategies piled up in the peak fundraising year of 2017 and then again last year. There is plenty of dry powder waiting in the wings.