Turnaround deals are a specialty within private equity that presents opportunities to invest whenever an industry or even just one company face sudden market changes or anytime interest rates go up and economic confidence falls. Currently restructuring industry insiders see prospects in the energy and mining, maritime shipping and retail, according to new survey data from Alix Partners.
Interestingly, several deals at various stages of the turnaround are in the news this week. Permira had a high performing exit with Hugo Boss after turning around its business model by expanding its international and retail operations, according to Bloomberg.
Japan’s third largest airline is trying to make a comeback with the backing of Integral Corp, an eight year old Japanese PE player, founded by Tokyo-based investment bankers. And Greentech Media has a back-from-the brink story about Conergy, a German solar energy player that had fallen into insolvency when a series of market changes caused its lenders to lose confidence. We note that the Conergy turnaround which began in 2013 was actually executed by a US based asset manager.