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Economic Benefits of Distressed Investing in Europe

With headquarters in Greenwich, Connecticut, and international offices in Paris, Hong Kong, and São Paulo, Brazil, Contrarian Capital Management, LLC, offers expert financial structuring strategies that enable distressed businesses to realize their full potential for profits and market penetration. In addition, Contrarian Capital provides effective management of portfolios comprised of distressed property assets.

Many companies possess a product that meets the needs and demands of its target audience and fills a niche that was previously empty. Yet despite their excellent market potential, these organizations sometimes fail because of inadequate funding or inexperienced management. Investments in distressed companies provide significant opportunities to maintain the economic viability of these companies and carry them to profitability. Successful investments in the sector require significant knowledge and a cohesive financing plan, but many investors have seen their transactions yield favorable returns.

Companies in Western Europe, which continues to undergo economic change as a result of currency and political pressures, attract investors because of the highly advanced technology, business, banking, and transportation resources available in those countries. Moreover, the European Union supports programs that simplify the processes and rules for investments in companies that are struggling financially. As a result, the climate for investment in distressed business remains extremely positive for a growing number of investors from the United States and Asia who choose to focus on this influential and important market.

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Why Invest in Emerging Markets?

Mid-sized, privately owned distressed securities investment firm Contrarian Capital Management, LLC, conducts its business on a global scale. Based in Greenwich, Connecticut, with additional offices in Sao Paulo, Paris, and Hong Kong, it allocates many of its resources towards the exchange of distressed securities in emerging markets. Contrarian Capital employs several emerging market experts to manage international portfolios and research trends and investment opportunities abroad.

Characteristics of emerging markets include a basic, though underdeveloped, financial infrastructure, an economy characterized by brisk economic growth, and industrialization. Although the largest emerging markets are represented by China and India, Brazil and Russia are not far behind. Despite the inherent risk of investing in developing economies, investors have begun to focus heavily on these markets because of their potential for high returns on investment. In Q1 of 2011, for example, hedge fund capital in emerging markets achieved a record high of over $120 billion, which has increased steadily ever since.