Key Takeaways
- • Himanshu Gulati, former head of U.S. distressed credit and special situations at Man GLG, launched Antara Capital Partners with $400 million in institutional backing ($150 million each from Blackstone and Corbin Capital) plus $50 million in friends and family capital, targeting a $600 million soft close.
- • Antara's differentiation strategy centers on deploying capital immediately through event-driven investments rather than holding dry powder, positioning the firm to generate returns across market cycles instead of waiting passively for distressed opportunities.
- • The distressed debt industry faces a challenging environment: as of March 2018, the sector held $166.75 billion in assets but accumulated $66.51 billion in dry powder—nearly double the $35.3 billion sitting idle five years prior—reflecting the extended credit cycle and scarcity of traditional distressed situations.
- • Gulati, who spent nine years at Richard Perry's Perry Capital before joining Man GLG in 2015 to launch the GLG Select Opportunities Strategy, will lead a team of experienced professionals he previously managed, signaling stability and continuity in execution.
Summary
Himanshu Gulati has established Antara Capital Partners as a credit-focused alternative investment platform designed to address a structural inefficiency plaguing the distressed debt industry: the accumulation of uninvested capital during an extended credit cycle. The firm launched with $400 million in commitments from blue-chip institutional investors Blackstone and Corbin Capital ($150 million each), supplemented by $50 million in founder capital, with plans to reach a $600 million initial close.
The timing of Antara's launch reflects growing frustration within the distressed investing community. The current credit cycle ranks among the longest on record, creating favorable borrowing conditions for corporates but starving distressed investors of traditional opportunities. Industry data underscores the challenge: as of March 2018, distressed debt funds globally held $166.75 billion in assets but sat on $66.51 billion in dry powder awaiting deployment. This dry powder has nearly doubled in five years, rising from $35.3 billion in 2013, illustrating the growing mismatch between capital availability and investment opportunities.
Antara's stated strategy directly counters this passivity. Rather than accumulating dry powder in anticipation of a distressed cycle, the firm commits to deploying capital across a flexible, event-driven mandate spanning the full capital structure. As Gulati articulated, "Our approach is designed to be fluid across the cycle and capital structure while targeting the most compelling risk-adjusted returns at all times, not just when a distressed cycle presents itself." This positioning allows Antara to generate returns from relative-value opportunities, special situations, and restructuring events rather than confining itself to traditional bankruptcy-focused distressed plays.
Gulati's credentials reinforce the execution credibility. He spent nine years at Perry Capital, one of distressed investing's premier platforms, before joining Man GLG where he built out the U.S. distressed and special situations franchise. Manny Roman, then Man's CEO (now heading PIMCO), recruited him to launch the GLG Select Opportunities Strategy in 2015. At Antara, Gulati will lead a team of seasoned professionals drawn from his prior management, suggesting continuity in deal sourcing, underwriting, and portfolio management capabilities.
The timing of Antara's launch reflects growing frustration within the distressed investing community. The current credit cycle ranks among the longest on record, creating favorable borrowing conditions for corporates but starving distressed investors of traditional opportunities. Industry data underscores the challenge: as of March 2018, distressed debt funds globally held $166.75 billion in assets but sat on $66.51 billion in dry powder awaiting deployment. This dry powder has nearly doubled in five years, rising from $35.3 billion in 2013, illustrating the growing mismatch between capital availability and investment opportunities.
Antara's stated strategy directly counters this passivity. Rather than accumulating dry powder in anticipation of a distressed cycle, the firm commits to deploying capital across a flexible, event-driven mandate spanning the full capital structure. As Gulati articulated, "Our approach is designed to be fluid across the cycle and capital structure while targeting the most compelling risk-adjusted returns at all times, not just when a distressed cycle presents itself." This positioning allows Antara to generate returns from relative-value opportunities, special situations, and restructuring events rather than confining itself to traditional bankruptcy-focused distressed plays.
Gulati's credentials reinforce the execution credibility. He spent nine years at Perry Capital, one of distressed investing's premier platforms, before joining Man GLG where he built out the U.S. distressed and special situations franchise. Manny Roman, then Man's CEO (now heading PIMCO), recruited him to launch the GLG Select Opportunities Strategy in 2015. At Antara, Gulati will lead a team of seasoned professionals drawn from his prior management, suggesting continuity in deal sourcing, underwriting, and portfolio management capabilities.
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