Glendon Capital Sees Opportunities in ‘Unraveling’ of PE Boom

Private equity firms struggling to realize returns for their investors are likely to offer an opportunity for distressed debt investors, according to Glendon Capital co-founder Holly Kim.

When stock prices are rocketing up, as they are these days, the general partners overseeing private equity funds are normally expected to cash in on older investments. So far though, they have largely been “unable or unwilling” to do so, Kim said in an interview.

That is creating anxiety among many outside investors, who put money into the private equity funds. As some of these limited partners need capital, they are increasingly ...