Firm: DDJ Capital Management
Fund: DDJ Capital Partners
Target: $400 million
The Waltham, Mass.-based firm plans to employ a control style of distressed investing for
The firm charges a management fee of 1.5 percent. Backers include the
DDJ Capital monitors the capital markets to identify companies in financial distress and often follows and analyzes companies before financial difficulties, covenant defaults or bankruptcy filings take place. When a covenant default is announced or a bankruptcy filing seems likely, DDJ then evaluates the company’s merits, which could include a competent management team, a sustainable market position, and/or a stable base asset value. DDJ also uses a network of turnaround consultants, restructuring advisers, bankruptcy lawyers, senior executives and investment bankers to find and evaluate possible distressed deals.
The firm uses four core strategies: control distressed, high yield debt, non-traditional corporate loans and credit-focused hedge funds. All strategies target the small and mid-cap portion of the lower equity and debt markets. DDJ Capital has 18 investment professionals doing research, investment management, trading and legal structuring of complex distressed transactions.
David Breazzano and Judy Mencher co-founded the firm in 1996 following careers together at Fidelity Investments.