Europe is in the midst of a vastly complicated social, political and economic restructuring that will cost trillions of euros and create significant investment opportunities. But while last year’s headlines heralded the latest “fire sale” and made us wonder if Europe herself was up for sale, the investment community has come to realize the market for distressed European assets is far more nuanced than it appeared on the surface.
A reckoning is taking place between the pragmatic and skeptical analysis of distressed investing and the thorny complexities of the current European financial situation. The likely outcome will be a slow and cautious mediation between individual European jurisdictions and the investing community, rather than a revolutionary overturning of the European economic order. The new investment rules for distressed Europe are country-specific, long-dated and somewhat lacking in drama. They are designed to evolve incrementally, just on the edge of mainstream political and economic events. This guide will clarify some of the most common issues we have resolved in a few of these challenging markets.