King Street’s Goldschmid Seeks Complexity and a ‘Growing Pie’

Distressed debt funds love to invest in complex deals that promise upside in return for deep expertise, but it’s just as important to weigh whether a debtor’s asset value stands to shrink or grow in the process of the restructuring, according to King Street Capital Management partner and co-portfolio manager Paul Goldschmid.

“You love to get into those tricky situations where there’s a complicated process or fight involved,” but “you need to go to the 30,000 foot view and ask, do we actually want to own this asset? Is there a growing pie?” Goldshmid said on the Feb. 3 ...