Centerbridge Partners' funds include the Credit Funds, the Special Credit Funds, the Capital Partners Funds, and Co-Investment Vehicles.The Capital Partners Funds focus on private equity and distressed-for-control investments. The funds invest opportunistically in (i) private equity investments across a range of industry verticals and (ii) distressed investments designed to obtain influence over or control of financially troubled companies. The funds' investments focus mainly on North America and Europe but, from time-to-may include opportunities in other geographies.For the Capital Partners Funds' private equity transactions, Centerbridge employs a variety of structures (including LBOs, recapitalizations, turnarounds, corporate buildups and growth opportunities) as well as forms (including common stock, preferred equity or debt of portfolio companies). Centerbridge seeks to invest opportunistically, employing rigorous analysis coupled with a value orientation across a broad range of targeted industry verticals and approaches.In distressed for influence or control transaction structures, Centerbridge invests through various distressed or defaulted debt instruments, including bank loans, publicly and privately traded bonds, including high yield bonds and “fallen angels,” trade claims, direct capital investments and other privately or publicly held instruments and claims. The funds seek to acquire material stakes in debt instruments or claims in an effort to acquire control of, or an influential equity stake in, the targeted business.The Credit Partners Funds and the Special Credit Funds focus on non-control distressed investments. The funds' approach combines traditional value investing with event and legal analysis (such as analysis of out-of-court restructuring transactions and Chapter 11 reorganizations, among others). The funds seek to minimize downside risk and protect principal through intensive credit research and active monitoring of the risk of each investment. The funds focus on senior or secured debt instruments issued by North American and European-domiciled companies (with a focus on the US). The funds also invest in areas outside North America with emphasis on Europe. The Credit Partners funds have the authority to use leverage and the Special Credit Funds have limited authority to do so. The funds seek to manage downside risk through the use of hedging techniques, such as interest rate, currency or other forms of hedging through options, forwards, derivative contracts (including credit default swaps) or other instruments.
