Opportunities in Distressed Debt During the Pandemic
We are all aware of the profound disruption that this pandemic is causing to our lives and our economy. It is the first pandemic we are facing in modern times and the level of uncertainty about how the situation will unfold is just unbearable. There are too many variables, and we really don't know how bad the economy will be impacted, and how long it will take for it to recover; we don't even know if and when this virus will leave our lives. What we do know for sure, though, is that, no matter what the central banks and governments do—no matter how much money they print and how they distribute it—an increasing number of people will delay and default on their loans, and more companies will declare bankruptcy, as it's already happening. There is no doubt that this is a grim environment for investors, especially for those who have exposure to the most affected sectors. However, the good news is that this disruption is also generating unprecedented opportunities that we are going to discuss with our guest panelists.
2 Interesting Data Points
PNC Financial Services Group said, it completed the sale of its stake in money manager Blackrock Inc. for some $14.4 billion. The Pittsburgh-based bank sold 31.6 million shares of common and preferred stock through a registered offering at $420 per share.
Blackstone COO, John Gray says distressed buying opportunities are still about a year away from full scale deployment of 44 billion dollars of dry powder while posting a 1st quarter write down of 30.3% on their distressed debt opportunities fund.
- What are the opportunities today in distressed debt?
- Is this an opportunity or a falling knife? What should investors think about when considering making an allocation in the distressed space?
- Are lenders lending and if not when will this change?
- What are the sources of deal flow and who gets the first look at the best opportunities? Why?
- Is this the end of the era for convenient lite notes?
Event Recording
Opportunities in Distressed Debt During the Pandemic
Speakers
Christian Sarcuni
- Title
- Private Investor @
- Company
- CS Holdings
- Role
- Moderator
An Italian entrepreneur from Bologna, Christian Sarcuni founded the food ordering platform PizzaBo in 2009, creating the first of its kind in Italy. Later in 2015, he sold the company to Rocket Internet, closing one of the most significant business deals in the startup industry. Following his role as CEO, Sarcuni began working as a private investor, collaborating with several family offices and developing expertise in uncorrelated niche strategies. Sarcuni earned his bachelor's degree in Information Science for Management from the University of Bologna and specialized in Alternative Investments at UCLA Extension.
Brian M. Prenoveau, CFA
- Title
- Director, Investor Relations and SEC Compliance @
- Company
- Safe Harbor Equiity
- Role
- Panelist
Brian is the Director of Investor Relations and SEC Compliance at Safe Harbor Equity. Brian has over 12 years of investor relations experience specializing in IPOs, shareholder turnover, cultivating Wall Street relationships, financial analysis, model construction. In addition, Brian spent 5 years on the sell side equity research covering REITs & consumer products. He has his B.S. Finance from Miami University (OH), and holds the Chartered Financial Analyst (CFA) designation.
Luiz Pacheco
- Title
- Portfolio Manager @
- Company
- Brainvest
- Role
- Panelist
10+ years of investment experience. Graduated in Civil Engineering from Universidade Federal do Paraná and has an MBA from Wayne State University. He is a CFA and CAIA charter holder and a CFP® professional.
Bill Bymel
- Title
- Managing Partner
- Role
- Panelist
With over two decades of experience in real estate, Bill Bymel has become known as a pioneer in the distressed debt space by creating a new paradigm for dealing with delinquent borrowers on residential real estate. His strategies and experiences personally overseeing the resolution of $250 million of NPL since 2009 are illustrated in Bill’s book WIN WIN REVOLUTION. Bill spent the last decade as a Senior Director, Signatory at Spurs Capital, a leading mortgage investment firm based in New York City. He recently founded First Lien Capital LP with a focus on NPL opportunities in both residential and small balance commercial real estate. As a Partner in Retail Sites International, a 40-year-old commercial real estate advisory firm based in South Florida, Bill’s clients included McDonalds, BJ’s Brewhouse, Darden Restaurants, and Family Dollar Stores. RSI Asset Management, founded in 2009, acts as a third-party asset and property manager for private equity funds or family offices that invest in Florida. He is a graduate of New York University, currently residing in Beverly Hills, California.
Aradhna Dayal
- Title
- Chief Executive Officer @
- Company
- Access Alts Asia
- Role
- Panelist
Aradhna runs her family office, Regal Ford Asia, one of the oldest family offices out of Hong Kong, investing in real estate and alternatives. The family office is seen as a pionee r in Industrial Buildings Revitalization and creating affordable office space for small businesses. Aradhna is also the founder of Access Alts Asia, an Asia-focused, members-only investment club, based out of Hong Kong. Access Alts is a network of some of the brightest minds in global investing, particularly Family Offices, Endowment & Foundations that freely exchange ideas, invest together and grow portfolio companies cross border. The club has 300 members/friends and $2 trillion in assets. Aradhna sits on several Board of Directors in Asia and was the first Asian and Woman to serve on many. Aradhna is also passionate about philanthropy, serving on committees of Teach for China, Women On Boards and Move4Migrants. She is a mother of two feisty teenagers, and when not sparring with them, is a frequent guest speaker at international events. Aradhna has read Global Strategic Management at Harvard Business School.
About
Safe Harbor Equiity
Safe Harbor Equity is an opportunistic private equity firm that strategically acquires, originates, manages and repositions performing and nonperforming asset-backed real estate mortgages up to $20 million.
With a proven track record of success navigating the complexities of the distressed debt space, Safe Harbor Equity seeks to preserve investor capital while targeting IRR’s of 20% or higher by leveraging highly sophisticated, bleeding-edge analytical techniques, coupled with decades of collective experience, to provide its investors superior returns that are uncorrelated with market volatility.
Leveraging its extensive contacts in the secondary markets for residential and commercial real estate loans; the investment banking and private equity communities, and the commercial and residential real estate sectors in general, Safe Harbor Equity leverages its extensive network to source deals and seize upon unique opportunities wherever they may arise.
Brainvest
Brainvest is an independent multi-family office with locations in Switzerland, Brazil and the US.
CS Holdings
A private investment holding that specializes in alternative and uncorrelated strategies.
Access Alts Asia
Access Alts Asia is an Asia-focused, members-only investment club, based out of Hong Kong. Access Alts is a network of some of the brightest minds in global investing, particularly Family Offices, Endowment & Foundations that freely exchange ideas, invest together and grow portfolio companies cross border. The club has 300 members/friends and $2 trillion in assets.
Alliant Strategic Investments is led by a highly respected team of socially conscious, industry experts with an average of 25 years of real estate experience in financing, managing, and operating over 100,000 affording housing units throughout the United States.
FLAIA is an open access platform of alternative investments for institutions, wealth advisors, family offices, RIAs, and accredited investors. General Partners gain access to a vertically integrated digital & traditional fintech marketplace and public relations system. Investors gain access to special opportunities and all relevant due diligence materials in one place.