not for search funds, but yes for other value-themed PE / public markets investments

From my experience working with PEs last year, a lot of the good distressed assets are bought already or in the process. In the case of Germany (maybe this applies to the US as well), the next opportunities become apparent once stimulus runs out and also bankruptcy laws are reinstated in pre-COVID form.

David --Yes, great post. I agree with the thesis there is a dramatic recovery in process in most (not all) sectors hit by Covid. Would also say 1) most owners hit hard are reluctant to sell right now, 2) There has been lots of financing through PPP, etc. so there is less distressed or required sales than in other recessions, 3) There are other PE firms and strategic acquirers who are also pursuing this thesis, and 4) despite some investors agreeing with this thesis, most are playing it safe, so you'll have to consider your investor base. Reach out if you'd like to exchange ideas on the recovery and anecdotal experiences re: acquisition opportunities.

I agree with Matt, it doesn't fall into the traditional search fund model but there is definitely a market for it. From a conversation I had with a colleague who went the distressed asset route, her biggest feedback was be brutally honest about your capabilities and your capacity to turn around the asset. During my search I came across a distressed asset that was in a field that I personally enjoyed and found myself papering over cracks or ignoring red flags because I wanted it to work. In the end I walked away well before investing too much time or effort but I could see the allure of the shiny object.