Private Credit

Invesco Distressed Credit and Special Situations

Invesco Credit Partners focuses on distressed credit and special situations investments in overlooked and inefficient markets.

2,000+ Unique companies

Included in our proprietary, private-side credit library.

 

 

As of September 30, 2025

$200B+ Debt Restructured

Career-long debt restructured over the distressed team’s career.

20+ yrs Leadership Experience

Average experience of our senior leadership team.

Unlocking value in inefficient markets

Exceptional distressed credit and special situations managers are not just great stewards of investor capital – they are also strong partners for businesses. At our core, we are problem solvers and value-creators who seek to help companies transition from challenging periods to ones of growth.

Across our investments, we target asymmetric return profiles. We seek to generate equity-like returns while assuming credit downside risk. The following themes define our approach:

Unlocking value in inefficient markets

Our private credit platform is one of the largest and most active financiers of corporate loans in the world. We utilize our entirely private-side orientation and extensive institutional connectivity with existing borrowers to maintain a vast radar of opportunities across the market.

We focus on small-capitalization companies. The opportunity set in this market is evergreen — smaller businesses are more prone to idiosyncratic issues, which occur independent of market cycles. Information access to those without a platform, such as ours, is typically opaque, and therefore, these markets are highly inefficient and can present excellent value opportunities.

We typically enter investments via senior secured debt. This approach allows for risk mitigation as we invest inside of intrinsic value, and our senior secured loan positions provide a priority claim on a company’s assets.

We employ private equity-style diligence in sectors and situations where we have a deep understanding of the business, industry, and path forward to stabilization and monetization. The process is augmented with insights and connectivity from our platform’s credit analyst team, which is one of the largest sector-based research teams in the private credit marketplace.

We are proactive investors. Prior to investing, we concentrate on identifying the cause of distress and clear catalysts to resolution. We then partner with our portfolio companies and their management teams to effectuate financial and operational restructuring.

Investment overview

Our investments have the following objective:
  • Return objective1: 16%-20% net IRR
  • Target Company size: Below $100 million EBITDA and/or <$1 billion market value of debt outstanding
  • Geography: Global
  • Investment size: Core Target of $50 million-$75 million
  • Sector approach: Industries with demonstrated investment experience augmented by 20+ person research team of sector specialists
Our experienced team looks to proactively create value across three types of investments:

  • Event-driven, secondary market credit opportunities for companies facing idiosyncratic challenges

  • Catalyst-oriented focused on discrete and discernable issues with near-term resolution potential
  • Direct dialogue with companies given Invesco scale
  • Issue resolution can lead to meaningful near-term appreciation

  • Control-oriented transactions

  • Value creation via financial and operational restructuring

  • History of executing beneficial out-of-court restructuring solutions

  • Fundamental change through active board representation and strategic direction

  • Ability to uncap upside potential and target equity return multiples

  • Holistic balance sheet solutions

  • New capital into distressed situations is generally structured as senior secured debt claim with meaningful equity participation

  • Flexible, strategic investments, including new senior debt, debtor-in-possession loans, rescue financings, forms of junior debt capital, preferred equity, and other structured solutions

Opportunistic Credit Investments, Distressed Credit and Special Situations are managed by Invesco Senior Secured Management, Inc. (ISSM). ISSM provides investment advisory services and does not sell securities. 

Distressed Credit and Special Situations team

View the full team

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  • 1

    There can be no assurance any such sourcing trends will continue. Targeted returns do not constitute a guarantee, are hypothetical, calculated using a model based upon assumptions determined by Invesco, and are for illustrative purposes only.

  • Target net internal rate of return (IRR)

    Calculated based on all Limited Partner contributions, distributions, and remaining Limited Partners’ capital less expenses (including management fees, organizational fees, professional fees, and carried interest).