The power of capital in a crisis: How special situation funds are changing the face of distressed asset financing
 

What are special situation funds? Not just a term, a strategy
Special Situation Funds (SSFs) are not like ordinary investors. They are the ‘first responders’ of the financial system - stepping in when the banks back off. These are the investors who step in with a strategy and a courage to fund companies when they are in a difficult time, when debt has piled up, there are legal issues, or the business is undergoing a transformation. Their specialty is not fear of complexity, but the ability to turn it into an opportunity.

India’s need today: Why are SSFs so important?
Post-Covid shocks, liquidity crunch and economic changes have left thousands of companies stranded in a ‘dream zone’, neither fully shut down, nor fully operational. This is where SSFs come in handy. This is the spark that can revive these businesses.

SEBI, RBI and changes to give new impetus to recovery
More flexible policies for ARCs
Encouraging institutional participation in AIFs
Better regulations to speed up resolution

True story: A factory reborn
An engineering unit in Gujarat was on the verge of closure due to huge debt and court cases. An SSF invested ₹65 crore, paid off the debt, took strategic equity and restarted the factory. Jobs returned, value restored.

SSFs vs traditional lenders
While banks focus on past records, SSFs believe in future potential. They are like a teacher who sees talent even in a dropout. SSFs see opportunity in ‘turnaround stories’.

Distressed doesn’t mean ‘doomed’, these are the problems SSFs solve:
Incomplete projects stuck in court cases
Cash-strapped, but fundamentally strong businesses
Promoters with assets facing temporary financial crunch

Credit Curators: Where Crisis Becomes Opportunity
We, Credit Curators, act as a bridge between SSFs and promoters by:
✅ Structuring high-potential deals
✅ Negotiating with lenders
✅ Implementing revival capital strategies

Conclusion: Challenge is opportunity
Special Situation Funds don’t just provide capital, they are a tool to revive a business. If your business is in distress, with the support of the right strategic advisor and an SSF, you can move from distress to profitability.