In a fireside chat hosted by Giovanni Amodeo, Mubashir Mukadam, the Managing Partner and Chief Investment Officer at Blantyre Capital, delved into the intricate world of private credit and special situations. The discussion provided a deep dive into the strategies and challenges of navigating the complex landscape of special situations investments, particularly in the European market.

Mukadam shared his rich background, tracing his journey from India to Malawi, and eventually to the UK where he transitioned from banking to investment, highlighting his pivotal roles at Deutsche Bank, York Capital, and KKR before founding Blantyre Capital. He emphasized the allure of special situations investments during economic downturns, such as the post-2001 tech bubble burst, where significant value could be captured.

A significant part of the conversation focused on the challenges of raising funds as a first-time fund, where Mukadam detailed his extensive efforts in securing investors, culminating in 814 meetings over 2.5 years to successfully launch a €500 million fund with a €240 million co-invest.

Mukadam also outlined the operational aspects of Blantyre Capital, noting the firm’s robust deal origination process that leverages both human expertise and proprietary technology. He stressed the importance of human intervention in executing complex deals, despite advancements in technology.

The discussion also covered the evolving landscape of European markets, with Mukadam pointing out the varying creditor-friendly environments across different countries. He identified Italy and Germany as key areas with significant investment opportunities due to their industrial capacities and ongoing economic challenges.

Mukadam further discussed the strategic positioning of Blantyre Capital in the market, emphasizing the importance of nimble and creative solutions for mid-market companies facing financial distress, particularly in an environment of rising interest rates and economic uncertainty.

The chat concluded with insights into the future direction of Blantyre Capital, with Mukadam affirming the firm’s focus on maintaining a robust presence in Europe, given the current market dynamics and opportunities.

This fireside chat not only highlighted the strategic insights of a seasoned investment leader but also shed light on the broader trends affecting the private credit and special situations sectors in Europe.

Key timestamps:

00:09: Introduction to ION Influencers’ Fireside Chats
00:34: Background and Journey to Blantyre Capital
01:58: Starting Blantyre Capital and Identifying Niche
03:45: Challenges in Fundraising and Early Success
05:39: Workflow and Transaction Volume
07:32: Role of Technology in Deal Origination
08:56: Analog Nature of Deal Execution and Technology
10:12: Overview of Special Situations in Europe
13:22: Fund Size, Team Structure, and Geographical Split
14:20: Intermediaries and Ecosystem in Special Situations
16:33: Barriers for Funds and Advantages of Independence
18:27: Investor Focus and Market Environment
20:00: Factors Driving the Current Market
22:03: Interest Rates, Investment Strategy, and Banking Role
24:11: Expansion, Hiring, and Future Strategies
25:17: Expansion and Future Strategies
25:47: Size and Relevance of the Fund
26:48: Conclusion