Among the strongest contenders are KKR, Hong Kong-based infrastructure investor CKI, hedge fund Covalis Capital, and London-based Castle Water. CKI has reportedly expressed the most serious commitment, proposing a '7bn capital injection. US infrastructure investor Stonepeak, which manages over $70bn in assets, and FitzWalter Capital, known for distressed debt investments, have also submitted proposals but are seen as less likely to proceed with firm bids. The process remains fluid, with all bids currently non-binding. FitzWalter's proposal suggests a minority equity investment in partnership with other investors rather than a full takeover. The firm also holds lower-ranking Thames Water bonds that could suffer heavy losses under the utility's '3bn loan deal with senior creditors. Covalis, another bidder, has been openly critical of how Thames Water and its adviser, Rothschild & Co, have handled the equity raise. Beyond private equity interest, Thames Water's senior bondholders, including US funds Elliott Management and Pimco, are preparing a backup creditor-led bid if the equity raise fails. Some bids may also include options for creditors to convert part of their debt into equity, potentially reshaping the company's financial structure....

The fundraising goal for Strategic Value Special Situations Fund VI was disclosed during a recent meeting of the New Jersey State Investment Council, which committed $100m to the fund. SVP declined to comment on the fundraising efforts. Founded by Victor Khosla in 2001, SVP focuses on acquiring debt from middle-market, asset-heavy companies in legacy industries. According to New Jersey SIC Chief Investment Officer Shoaib Khan, the firm's strength lies in its ability to source investments at competitive prices, particularly through direct sourcing. SVP has significantly increased its direct deal flow, with 80.5% of Fund V investments coming from banks and private credit firms, up from just 7.4% in Fund I. Fund VI is targeting a 15% internal rate of return (IRR), consistent with the performance of its last four funds. The broader distressed debt market has seen increased activity as inflation, economic uncertainty, and higher borrowing costs weigh on highly leveraged firms. Sectors such as retail, real estate, and energy are presenting growing opportunities for private equity and hedge funds focused on distressed assets....

Francisco Partners is acquiring the business from rival private equity firm Nordic Capital, according to people familiar with the matter. The US-based firm beat out competition from other private equity groups and strategic buyers. Nordic Capital has made about six times its money after first backing Macrobond in 2018, showing the returns on offer to investors drawn to the typically predictable subscription-based revenues financial data providers have. Over the past 18 months, financial data providers Reorg and Leveraged Commentary and Data have both also traded hands in big money deals. Buyout group Permira took a majority stake last August in Reorg which valued the distressed debt and bankruptcy information provider at about $1.3bn. That came months after data group Morningstar acquired Leveraged Commentary and Data, which reports on debt financing transactions, from S&P in a deal worth up to $650mn. Nordic Capital bought Macrobond with the aim of helping it to expand its market position. 'We made significant investment into the technology of the business as well as putting a strong focus on building its unique data set and differentiating from its competition,' said Emil Anderson, a partner at Nordic Capital. Nordic Capital also helped push the company into new markets in Asia and North America....

'We're likely to see more and more deals being anchored by controlling or relevant holders,' said Roberto Zarour, a partner and restructuring lawyer at Lefosse Advogados. The capital injections, he added, are not always a voluntary decision from founders but a demand from creditors. Interest rates sitting at a six-year high, the credit stress that followed the collapse of retailer Americanas SA and monetary tightening in the US and Europe have made it harder to borrow at home and abroad. As a result, the pile of dollar corporate notes from the nation trading at distressed levels surged to $12 billion, up 26% from the start to the year, data compiled by Bloomberg show. In the past few months, at least half a dozen key shareholders have stepped in. Guilherme Paulus, who founded travel agency chain CVC Brasil Operadora e Agencia de Viagens SA five decades ago but had unloaded his stake in the past few years, subscribed part of the company's public equity offering that priced last Thursday. The transaction was part of an agreement with local bondholders in a distressed debt restructuring....