Money Makers Mentor

Distressed Asset Report: January 2021

As the calendar changes and COVID continues its assault on the overall economy, private equity firms must manage their distressed portfolio companies.

Firms appear up for the challenge. January marks the lowest total number of defaults and the second lowest total number of distressed assets in a given month since The Buttonwood Tree began to track distressed assets in April.

In all, 13 portfolio companies were deemed to be distressed for the month of January, with 12 companies receiving distressed ratings and one defaulting on loans.

The 13 total companies represent the lowest on record for TBT. The 12 distressed portfolio companies are the lowest since November, during which 11 companies were designated as distressed. Further, the one default is the fewest in a given month.

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