Special Situations

We employ an all-weather, flexible capital strategy that targets private and public debt and non-control equity investments in middle market companies undergoing transformational change or stress. Our strategy targets a broad spectrum of non-distressed special-situation, stressed and distressed investments. To further enhance flexibility, our strategy employs an industry, enterprise value and capital structure (i.e., debt or equity) agnostic approach to seek to identify in our view mispriced opportunities across various market environments.

Private Markets

In the private markets, we seek to leverage the substantial resources of Ischyros New York's private equity and direct lending franchises by partnering with companies and management teams to provide flexible capital solutions.

This process of providing companies with private capital solutions that offer leadership, flexibility and distressed expertise in the form of incremental liquidity and/or covenant relief can empower a business going through transformational change or stress by improving cash flows, reducing leverage and returning the business to corporate health.

We aim to deploy capital in private markets in benign and volatile markets, while layering on public market investments during periods of volatility.

Targeted Investments

We seek to deploy capital across a broad range of non-control private market and public market transaction types with respect to companies undergoing transformational change or stress.

We search for companies that are being challenged by one or more of the following:

  • The business model or management team is undergoing a significant transition;

  • The industry is broadly out-of-favor in the capital markets and/or is going through secular or cyclical change; or

  • The balance sheet has become overly cumbersome, complex and/or unsustainable.

Targeted Investment Types

PRIVATE MARKETS

Opportunistic Special Situations

  • Provide non-distressed companies with bespoke debt and structured equity solutions at the operating asset level and/or holding company level to unlock debt capacity and/or support growth initiatives.

  • Examples include: Secured/unsecured debt, preferred/common equity, warrants

Rescue Financings

  • Provide companies with debt and structured equity solutions with a strict focus on (i) asset and/or cash flow coverage and (ii) downside protection

  • Examples include: 1st/2nd lien secured debt, non-recourse SPV debt financings, convertible/straight preferred equity

Comprehensive Recapitalization Solutions

  • Provide companies with "end-to-end" capital solutions across the capital structure which in turn can provide management with flexibility, liquidity and runway to seek to execute strategic initiatives and realize growth

  • Examples include: Secured/unsecured debt, preferred/common equity, warrants

Public-to-Private Conversions

  • (i) Convert public debt investments into non-control private equity investments via restructuring, and

  • (ii) potentially utilize public debt position to negotiate a private opportunities financing.

  • Examples include: Fulcrum debt securities (restructurings), various (private opportunities financing)

PUBLIC MARKETS

Public-to-Private Candidates

Purchase stressed / distressed debt in middle market companies which Ischyros believes will either (i) need rescue financing or have to be restructured due to disruptive industry change, over-leverage, liquidity duress and/or macroeconomic headwinds or (ii) potentially benefit from growth capital to play offense

Public-Only Opportunities

Purchase stressed debt, hung financing syndications and post-reorganization equities in middle market companies or stressed securitized / structured assets that Ischyros believes will remain healthy enough to avoid needing rescue capital or being restructured

Opportunistic Purchases

Purchase securities in large or middle market, high-quality companies trading inefficiently, which Ischyros believes will rebound in price quickly