Stanfield Capital Partners is looking to expand its distressed debt business as the firm believes good opportunities in distressed land will continue to surface in the market. Stanfield is planning to continue to expand its distressed fund through money raising activity this year and next.
In response to whether or not the biggest distressed opportunities have already passed, Dan Baldwin, chief investment officer at the firm, said, "Last year there were tremendous values and plays that were done, but as various companies decline from good graces and restructure, I think opportunities will continue for the next 12 to 18 months," he said. Robert Paine, group head of distressed/special situations for the firm, said that default rates may have peaked this year, but there is an expectation of a continued heavy volume of defaults across industries.
Paine said even though many private equity funds are focusing on the distressed area as a way to put money to work, many full line competitors with deep research staffs and systems have stopped their cash raising efforts right now. Paine said the group will probably hire an analyst in the future, but he said plans for hiring in other positions have not been made. Paine joined the firm two weeks ago after a 15-year career at Putnam Investments.