Distress investing is dead. Long live distress investing
The last year has been a roller coaster for distressed debt. Investors leapt into action at the beginning of the pandemic before the government stimulus and the Fed’s buying spree curtailed the entry of distressed assets into the market. Now, after a year of the pandemic, investors are gearing up for reentry, and alternative lenders like Madison Realty Capital are stepping in to fulfill the role once played by banks. “There is a lot of flexibility needed,” according to Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, whose firm uses its series of successful debt funds to create bespoke loans for everything from construction to debt service.