Interest Rates Create a Compelling Special Situations Backdrop
The current environment is attractive for special situations investing, driven by capital structures from the 2020–2021 LBO cycle that were built for a much lower interest‑rate environment. With rates remaining high, many companies are now facing pressure from weaker free cash flow, liquidity constraints or leverage challenges. Special situations and hybrid capital can help companies bridge this period through deleveraging or added flexibility, making today’s rate backdrop a key driver of opportunity.
