With corporate loan defaults and insolvencies fuelled by overleveraged businesses still rising, turnround deals ought to be in abundance among private equity firms. But few have been completed despite a wall of capital ready to be deployed, as firms prefer to restructure portfolio companies rather than pursue distressed assets available in the market.

Specialist distressed and turnround funds on the road total $53.7bn (€36.5bn), according to research firm Preqin, equivalent to one quarter of total buyout funds, at $195bn. Among those raising funds are Oaktree Capital Management, focused on distressed debt, and Ares Management and Carlyle Group which target special situations.