Duff & Phelps launches special situations M&A practice

By Susanna Moon

Chicago, Feb. 5 - Duff & Phelps Corp. said it formed a special situations mergers-and-acquisitions practice.

Services offered include M&A advisory services in situations where the target company or its owner is significantly underperforming or experiencing financial distress, including out-of court divestitures and Chapter 11 Section 363 asset sales, and private capital raising for refinancing or recapitalization in times of financial distress.

"Unprecedented credit conditions in the marketplace are impacting a significant number of middle market companies, even those without stress on the balance sheet," Steve Burt, managing director and head of mergers and acquisitions at Duff & Phelps, said in a press release.

Duff & Phelps said that according to Dow Jones, private equity fundraising designated specifically for distressed investments topped $48 billion in 2007, or a 300% increase in funds raised for distressed investments over the previous year.

The company's practice brings together bankers with expertise in restructuring and M&A who know the debt markets and bankruptcy procedures and can manage a sale process amid contentious parties, Burt added.

"Hedge funds, sponsors and institutions are amassing large pools of capital for distressed investing, and they are scouring the market for investment opportunities," Russell Belinsky, senior managing director of restructuring and co-founder of Chanin Capital Partners, which was acquired by Duff & Phelps in November 2006, said in the release.

"Meanwhile, the credit crunch is putting a strain on companies and their ability to borrow. As a result, some of these companies will look to sell underperforming operations or assets to raise capital," Belinsky said.

Duff & Phelps is a New York-based provider of independent financial advisory and investment banking services.

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